Question

Can someone help me please.
Rosa invests $3300 in an account with an APR of 3% and annual compounding. Julian invests $2800 in an account with an APR of 4% and annual compounding.
A. After 5 years Rosa will have a balance of approximately $ ____. After 20 years Rosa will have a balance of approximately $_____. (Round to the nearest cent.)

Answer 1

Question sounds familiar. Did you ask this last night?
\[3300\times1.03^{5}\] = 3825.60 according to my calculator. Raise to the 20th power instead of the 5th power to answer the second part. I guess the stuff about Julian is irrelevant or perhaps there are later questions about him?

Answer 2

For Rosas' investment. for 5 years. n=5, r= 3, P=$3300\[A=P(1+\frac{r}{100})^n = 3300(1+\frac{3}{100})^5 =3300(1+0.03)^5=3300(1.03)^5\]\[=3300(1.03)^5=3300 \times 1.159 =3824.7 - dollars\]

Answer 3

So thats Rosas balance after 5 years?

Answer 4

Yes....

Answer 5

I disagree with the last line on dpasingh's reply. Do NOT round the 1.03^5 to 1.159. Don't round until your final answer.

Answer 6

So 3,825.60

Answer 7

Yes.

Answer 8

for 20 years do i just change the power from 5 to 20?

Answer 9

You got it! I don't even think about the long involved formula for annual compounding. Just multiply by 1.0interest rate raised to however many years you wanna compound

Answer 10

Can someone help me complete the rest of this problem.
Rosa invests 3300 in an account with an APR of 3% and annual compounding. Julian invests 2800 in an account with an APR of 4% and annual compounding. Complete 1 through c.
a. after 5 years Rosa will have a balance of approximately 3,825.60/ After 20 years Rosa will have a balance of approximately 5960.17.
After 5 years Julian will have a balance of $____. After 20 years Julian will have a balance of approximately $ ___.