Respuesta :
The balance in account after 3 years is $ 126.82
Solution:
The formula for compound interest, including principal sum, is:
[tex]A = p(1+\frac{r}{n})^{nt}[/tex]
Where,
A = the future value of the investment
P = the principal investment amount
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per unit t
t = the time the money is invested
From given,
p = 100
t = 3 years
r = 8 % = 8/100 = 0.08
n = 4 times
Therefore,
[tex]A = 100(1 + \frac{0.08}{4})^{4 \times 3}\\\\A = 100( 1 + 0.02)^{12}\\\\A = 100(1.02)^{12}\\\\A = 100 \times 1.2682\\\\A = 126.82[/tex]
Thus the balance in account after 3 years is $ 126.82
The balance in the account after 3 year is $126.82
Compound interest
- A = P(1 + r/n)ⁿˣ
where
A = amount
P = principal = $100
r = rate = 8% = 8 / 100 = 0.08
x = time
Therefore,
A = 100 (1 + 0.08 / 4)⁴⁽³⁾
A = 100(1.02)¹²
A = 100 × 1.26824179456
A = 126.824179456
A = $126.82
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