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Suppose that $2000 is invested at a rate of 2.4%, compounded quarterly. Assuming that no withdrawals are made, find the total amount after 5 years.Do not round any intermediate computations, and round your answer to the nearest cent.Х5?

Suppose that 2000 is invested at a rate of 24 compounded quarterly Assuming that no withdrawals are made find the total amount after 5 yearsDo not round any int class=

Respuesta :

The formula for compoundings made n times per year is:

[tex]A=p\cdot(1+\frac{r}{n})^{nt}[/tex]

then start by replacing the data given in the problem and n=4 since the compounding is done quarterly

[tex]\begin{gathered} A=2000\cdot(1+\frac{0.024}{4})^{5\cdot4} \\ A=2000\cdot(1+0.006)^{20} \\ A=2000\cdot(1.006)^{20} \end{gathered}[/tex]

solve and round to the nearest cent

[tex]A=2254.1852\cong2254.19[/tex]

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