MATH SOLVE

3 months ago

Q:
# 1. Two thousand dollars is invested at 5.5 percent interest compoundedquarterly for 2 years. Find the amount.

Accepted Solution

A:

Two thousand dollars is invested at 5.5 percent interest compounded
quarterly for 2 years. Then the amount is $ 2230.88Solution:Given that Two thousand dollars is invested at 5.5 percent interest compounded quarterly for 2 yearsThe formula for amount using compounded quarterly is given as:[tex]\text { Amount }=P\left(1+\frac{R / 4}{100}\right)^{4 T}[/tex]Where, "p" is the principal sum"R" is the rate of interest"T" is the number of yearsHere in this problem,P = 2000 ; R = 5.5 ; T = 2 yearsPlugging in values in formula we get,[tex]\text {Amount}=2000\left(1+\frac{\frac{5.5}{4}}{100}\right)^{4 \times 2}[/tex][tex]=2000\left(1+\frac{1.375}{100}\right)^{8}[/tex]On solving we get,[tex]=2000(1+0.01375)^{8}=2000(1.11544)=2230.88[/tex]Hence the amount is $ 2230.88