Question

Part 1Use the periodic compound interest formula to solve.Suppose that$5000 is invested at3.5% compoundedquarterly. Find the total amount of this investment after8 years.The amount after8 years will be $enter your response here

Answer 1

Given:

P= 5000

r= 3.5%

n=4 and t= 8

The formula as follows:

`\begin{gathered} F=P*(1+(r)/(n))^(nt) \\ =5000*(1+((3.5)/(100))/(4))^(4*8) \\ =5000*(1+(0.035)/(4))^(32) \\ =6607.59676 \end{gathered}`

equired answer is 6607.60.