Answer:
Please check the explanation.
Step-by-step explanation:
To find the amount we use the formula:
[tex]A=P\cdot \left(1+\frac{r}{n}\right)^{nt}[/tex]
Here:
A = total amount
P = principal or amount of money deposited,
r = annual interest rate
n = number of times compounded per year
t = time in years
Given
P=$3500
r=2.5%
n=12
t = 5 years
Calculating compounded monthly
After plugging in the values
[tex]A=3500\left(1+\frac{2.5\%\:}{12}\right)^{12\cdot \:5}[/tex]
[tex]A=3500\left(1+\frac{0.025}{12}\right)^{12\cdot \:5}[/tex]
[tex]A=3500\cdot \frac{12.025^{60}}{12^{60}}[/tex]
[tex]A = 3959.93[/tex]
Thus, If you deposit $3500 into an account paying 2.5% annual interest compounded monthly, you will have $3959.93 after five years.
Calculating compounded weekly
n = 52
[tex]A=3500\left(1+\frac{2.5\%\:}{52}\right)^{52\cdot \:5}[/tex]
[tex]A=3500\left(1+\frac{0.025}{52}\right)^{52\cdot \:5}[/tex]
A = 3,965.90
Thus, If you deposit $2000 into an account paying 4.5% annual interest compounded weekly, you will have $3,965.90 after five years.
