Answer:
$9,712.12 (nearest cent)
Step-by-step explanation:
[tex]\boxed{\begin{minipage}{8.5 cm}\underline{Compound Interest Formula}\\\\$ A=P\left(1+\frac{r}{n}\right)^{nt}$\\\\where:\\\\ \phantom{ww}$\bullet$ $A =$ final amount \\ \phantom{ww}$\bullet$ $P =$ principal amount \\ \phantom{ww}$\bullet$ $r =$ interest rate (in decimal form) \\ \phantom{ww}$\bullet$ $n =$ number of times interest is applied per year \\ \phantom{ww}$\bullet$ $t =$ time (in years) \\ \end{minipage}}[/tex]
Given:
- P = $9,544
- r = 5.25% = 0.0525
- n = 12 (monthly)
- t = 4 months = 1/3 year
Substitute the given values into the formula and solve for A:
[tex]\implies A=9544\left(1+\frac{0.0525}{12}\right)^{12 \cdot \frac{1}{3}}[/tex]
[tex]\implies A=9544\left(1.004375\right)^{4}[/tex]
[tex]\implies A=9544\left(1.017615179\right)[/tex]
[tex]\implies A=9712.119269[/tex]
The balance of the account at the end of August will be $9,712.12 (nearest cent).
