Respuesta :
compound interest formula: A=P(1+i) ^n, P=initial investment, i=interest rate per period, n=number of periods, A=amount after n years.
For annual compounding:
P=350
i=7%/1=0.07
n=5*1=5
A=350(1+.07)^5
A=350(1.07)^5
A=350(1.4026)=$490.91
For quarterly compounding:
P=350
i=7%/4=0.0175
n=5*4=20
A=350(1+.0175)^20
A=350(1.0175)^20
A=350(1.1448)=$400.68
For monthly compounding:
P=350
i=7%/12=0.005833
n=5*12=60
A=350(1+.005833)^60
A=350(1.005833)^60
A=350(1.4176)=$496.16
What is Compound interest?
Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
It occurs when interest is reinvested or added to the loaned capital rather than paid out, or when the borrower is required to pay it, so that interest is generated the next period on the principal amount plus any accumulated interest.
The interest per period multiplied by the number of periods in a year yields the simple annual interest rate. The nominal interest rate is another name for the basic annual interest rate.
To learn more about Compound Interest, refer to:
https://brainly.com/question/14295570
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