Respuesta :
Answer:
y = 500(1.03)ˣ; y = 579.64
Step-by-step explanation:
Since the amount is compounded yearly, we use the formula for compound interest:
y = p(1+r)ˣ, where y is the total amount, p is the amount of principal invested, r is the interest rate and x is the number of years.
In this problem, the amount invested, p, is 500; the interest rate, r, is 3% = 3/100 = 0.03. This gives us
y = 500(1+0.03)ˣ, or
y = 500(1.03)ˣ.
To find the account balance at the beginning of year 6, we replace x with 5 (this is because only 5 time periods have passed):
y = 500(1.03)⁵ = 579.64.
Account’s balance at the beginning of year 6 is 579.64 given that the beginning of year 1 Lisa invests $500 at an annual compound interest rate of 3% she makes no deposits to or withdrawals from the account. This can be obtained by using compound interest formula.
What is compound interest?
- It is the interest imposed on a loan or deposit amount.
- Formula for compound interest is,
[tex]A=P(1+r)^{n}[/tex] where A is the amount, P is the principle, r is the interest rate, t is the time, n is the number of times interest is compounded per year.
Calculate the account's balance:
Given that, P = $500, r = 3% = 0.03 and let A = y, n=x
Putting these values in the compound interest formula we get,
y = 500(1+0.03)ˣ
Account balance at the beginning of 6 years, put x=5
y = 500(1+0.03)⁵ =579.64
Thus account’s balance at the beginning of year 6 is 579.64 given that the beginning of year 1 Lisa invests $500 at an annual compound interest rate of 3% she makes no deposits to or withdrawals from the account.
Learn more about compound interest here:
brainly.com/question/1128320
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