Question

Part 1Use the periodic compound interest formula to solve.Suppose that$5000 is invested at3.5% compoundedquarterly. Find the total amount of this investment after8 years.The amount after8 years will be $enter your response here

Answer 1

Given:

P= 5000

r= 3.5%

n=4 and t= 8

The formula as follows:

$\begin{gathered} F=P\times(1+\frac{r}{n})^{nt} \\ =5000\times(1+\frac{\frac{3.5}{100}}{4})^{4\times8} \\ =5000\times(1+\frac{0.035}{4})^{32} \\ =6607.59676 \end{gathered}$

equired answer is 6607.60.