Answer:
$1,041.69
Step-by-step explanation:
First, convert R as a percent to r as a decimal
r = R/100
r = 5/100
r = 0.05 rate per year,
Then solve the equation:
Forumla; P(1 + r/n)nt
700.00(1 + 0.05/4)(4)(8)
700.00(1 + 0.0125)(32)
$1,041.69
hope this helps!
Answer:
$1,041.69
Step-by-step explanation:
Compound interest formula: [tex]A=P(1+\frac{r}{n})^{nt[/tex]
A = amount (future value ($))
P = principal (orignal amount - $700)
R = rate (written as a decimal - 5%/100= 0.05)
N = compound (quarterly - 4) 4 quarters in 1 yr.
T = number of years (8)
[tex]A=P(1+\frac{r}{n})^{nt[/tex]
[tex]A=P(1+\frac{r}{n})^{nt}\\\\A=700(1+\frac{0.05}{4})^{4*8} < == start\ from\ the\ parenthesis\ and\ divide\ first\\\\A=700(1+0.0125)^{4*8} < == add\ the\ \#s\ in\ the\ parenthesis\\\\A=700(1.0125)^{4*8} < == multiply\ the\ exponents\\\\A=700(1.0125)^{32} < ==multiply\\\\A=700(1.488131) < ==multiply\\\\A=1041.691\\\\A=$1,041.69[/tex]
Hope this helps!
