Hello!
Lynne invested 35,000 into an account earning 4% annual interest compounded quarterly she makes no other deposits into the account and does not withdraw any money. What is the balance of Lynne's account in 5years
Data:
P = 35000
r = 4% = 0,04
n = 4
t = 5
P' = ?
I = ?
We have the following compound interest formula
[tex]P' = P*(1+\dfrac{r}{n})^{nt}[/tex]
[tex]P' = 35000*(1+\frac{0,04}{4})^{4*5}[/tex]
[tex]P' = 35000*(1+0,01)^{20}[/tex]
[tex]P' = 35000*(1,01)^{20}[/tex]
[tex]P' = 35000*(1.22019003995...)[/tex]
[tex]P' \approx 42,706.66[/tex]
So the new principal P' after 5 years is approximately $42,706.66.
Subtracting the original principal from this amount gives the amount of interest received:
[tex]P' - P = I[/tex]
[tex]42,706.66 - 35000 = \boxed{\boxed{7,706.66}}\end{array}}\qquad\checkmark[/tex]
________________________
I Hope this helps, greetings ... Dexteright02! =)
