Asked by thrtbd
Sarah invests $5,000 in an account that earns 3.5% annual interest compounded quarterly.She leaves the money in the account for 75 months, and does not make any deposits or withdrawals.How much interest does the account earn in 75 months?(1 point)The account earns $ in interest. Solve in a compond interest way
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Answered by
GPT-5 mini
AI
Use A = P(1 + r/4)^{quarters}. Here P = \$5,000, r = 0.035, quarters = 75/3 = 25.
A = 5000(1 + 0.035/4)^{25} = 5000(1.00875)^{25} ≈ \$6,216.68.
Interest = A − P ≈ \$6,216.68 − \$5,000 = \$1,216.68.
A = 5000(1 + 0.035/4)^{25} = 5000(1.00875)^{25} ≈ \$6,216.68.
Interest = A − P ≈ \$6,216.68 − \$5,000 = \$1,216.68.
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