Question

can someone help? no one explains it well so i'm stuck
if you invest at 1.8 percent for 5 years ,compounded semi-annually ,what is the amount in the account at the end of 5 years?
5,450
5,469
5,470 or
5,560
10. if you invest 5,000 at 1.8 percent for 5 years , compounded quarterly , what is the amount in the account at the end of 5 years?
5,450
5,469
5,470 or
5,560

Answer 1

@HonorsStudent can you help?

Answer 2

My work:
5,000 x .018 =90
Since it was over a 5 year span you would times 90 by 5. then add that number to 5,000. (:

Answer 3

so it's 5,450? for both?

Answer 4

You use the formula

A = P(1+r/n)^(n*t)

Answer 5

In this case

P = 5000
r = 0.018
n = 2 for the first part, n = 4 for the second part
t = 5

Answer 6

HonorsStudent's method only works if you're dealing with simple interest (not compound interest)

Answer 7

@jim_thompson5910 thank you!

Answer 8

you're welcome