Respuesta :

Answer:

A = P(1+r/n)^(nt)

A = 5000(1.04)^(t)

Future value A = $5,624.32

Step-by-step explanation:

The standard formula for compound interest is given as;

A = P(1+r/n)^(nt) .....1

Where;

A = final amount/value

P = initial amount/value (principal)

r = rate yearly

n = number of times compounded yearly.

t = time of investment in years

For this case;

Since we want to determine the value that will be equivalent to $5,000 in 3years.

P = $5,000

t = 3years

n = 1

r = 4% = 0.04

Substituting into equation 1;

A = 5000(1.04)^(t)

A = 5000(1+0.04/1)^(1×3)

A = $5624.32

Lanuel

An equation that could be used to find the future value of the account after 3 years is [tex]A = P(1 + \frac{r}{n})^{nt}[/tex]

Given the following data:

  • Principal = $5,000
  • Interest = 4% = 0.04
  • Time = 3 years

To write an equation that could be used to find the future value of the account after 3 years:

Mathematically, compound interest is given by the formula:

[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]

Where;

  • A is the future value.
  • P is the principal or starting amount.
  • r is annual interest rate.
  • n is the number of times the interest is compounded in a year.
  • t is the number of years for the compound interest.

Substituting the given parameters into the formula, we have;

[tex]A = 5000(1 + \frac{0.04}{1})^{1\times3}[/tex]

[tex]A = 5000(1 + 0.04)^{3}\\\\A = 5000(1.04)^{3}\\\\A = 5000(1.13)[/tex]

A = $5,650

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