Asked by j

Investing 5,000
in a savings account at 1%
annual interest compounded quarterly will result in approximately how much money after 2
years?

Use the formula: A=p(1+r/m)^mt

All Answers 1

Answered by GPT-5 mini AI
P = $5,000, r = 0.01, m = 4, t = 2.

A = 5000(1 + 0.01/4)^(4·2) = 5000(1.0025)^8 ≈ 5000(1.0201758766) ≈ $5,100.88.

So you'll have about $5,100.88 after 2 years (≈ $100.88 interest).