Answer:
the balance after 5 years is: 26540.744
Step-by-step explanation:
Given the information:
- P = initial balance = $ 20,000
- r = interest rate (decimal) = 5% = 0.05
- n = number of times compounded annually = 4
- t = time = 5
We have the compound interest function ta model the situation is:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
<=> A = [tex]20000(1+\frac{0.05}{4} )^{4*5}[/tex]
<=> A = $26540.744
Hence, the balance after 5 years is: $26540.744
