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19. Heather invests $4,900 in an account with a 3.5% interest rate, making no other deposits or withdrawals. What will Heather’s account balance be after 5 years if the interest is compounded 2 times each year?

Respuesta :

calculista

Answer:

[tex]\$5,828.28[/tex]

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

[tex]t=5\ years\\ P=\$4,900\\ r=0.035\\n=2[/tex]  

substitute in the formula above  

[tex]A=\$4,900(1+\frac{0.035}{2})^{2*5}[/tex]  

[tex]A=\$4,900(1.0175)^{10}=\$5,828.28[/tex]

Answer:

5,828.28

Step-by-step explanation:

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