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
Given P = \$5,000, r = 0.01, m = 4, t = 2:
A = P(1 + r/m)^{mt} = 5000(1 + 0.01/4)^{4·2} = 5000(1.0025)^8.
(1.0025)^8 ≈ 1.020175876, so
A ≈ 5000 × 1.020175876 ≈ \$5,100.88.
So you'll have about \$5,100.88 after 2 years.
A = P(1 + r/m)^{mt} = 5000(1 + 0.01/4)^{4·2} = 5000(1.0025)^8.
(1.0025)^8 ≈ 1.020175876, so
A ≈ 5000 × 1.020175876 ≈ \$5,100.88.
So you'll have about \$5,100.88 after 2 years.
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