Question

Compute the amount in an account after 8 yr if $6500 is invested at an annual interest rate of 5.25% compounded quarterly. Round to two decimal places.

Answer 1

Answer:

$9865.76¢

Step-by-step explanation:

Please kindly check the attached file for explanation.

Answer 2

Using compound interest, it is found that the amount in the account is of $9,865.76.

Compound interest:

$A(t) = P(1 + \frac{r}{n})^{nt}$

• A(t) is the amount of money after t years.  
• P is the principal(the initial sum of money).  
• r is the interest rate(as a decimal value).  
• n is the number of times that interest is compounded per year.  
• t is the time in years for which the money is invested or borrowed.

In this problem:

• $6500 is invested, thus $P = 6500$
• 8 years, thus $t = 8$
• Interest rate of 5.25%, thus $r = 0.0525$.
• Compounded quarterly, thus $n = 4$.

The amount in the equation is:

$A(t) = P(1 + \frac{r}{n})^{nt}$

$A(8) = 6500(1 + \frac{0.0525}{4})^{32}$

$A(8) = 9865.76$

The amount is of $9,865.76.

A similar problem is given at https://brainly.com/question/24507395