Respuesta :
Hi there:)
First find the future value
The formula is
A=p (1+r/k)^kt
A future value?
P present value 2257
R interest rate 0.10
K compounded quarterly 4
T time 5 years
A=2,257×(1+0.10÷4)^(4×5)
A=3,698.36
Now find the amount of interest
I=A-p
I=3,698.36−2,257
I=1,441.36
Hope it helps
First find the future value
The formula is
A=p (1+r/k)^kt
A future value?
P present value 2257
R interest rate 0.10
K compounded quarterly 4
T time 5 years
A=2,257×(1+0.10÷4)^(4×5)
A=3,698.36
Now find the amount of interest
I=A-p
I=3,698.36−2,257
I=1,441.36
Hope it helps
Compound interest is the adding of interest to the principal sum of a loan or deposit. After 5 years, the amount of interest compounded at 10% quarterly is $1441.36.
What is compound interest?
Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan or deposit. It's the outcome of reinvesting interest rather than paying it out so that interest is received on the principal plus previously collected interest in the next quarter.,
[tex]A = P(1+ \dfrac{r}{n})^{nt}[/tex]
where A is the final amount
P is the principal amount
r is the rate of interest
n is the number of times interest is charged in a year
t is the number of years
Given that Stan’s savings account has a balance of $2257. Therefore, the balance after 5 years will be,
[tex]A = \$2257(1+\dfrac{0.1}{4})^{(4 \times 5)}[/tex]
= $2257(1.6386)
= $3698.36
Now, the amount of intersest will be,
Amount of interest = $3698.36 - $2257
= $1441.36
Hence, After 5 years, the amount of interest compounded at 10% quarterly is $1441.36.
Learn more about Compound Interest:
https://brainly.com/question/25857212
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