Question

HELP PLEASEEEEEEEEEEE I'm MELTINGGGGGGGGGGG



If Susan invests $1000 in an account that yields 5% annual, compounding quarterly, then how much does she have after 6 years?

Why do I divide 5/4 instead of 1.05/4?

Answer 1

um i think that for this you will have to multiply .05 and 6 and then multipy 1000 by 1.** the decimal with be the .05 * 6
sorry if im wrong im just trying to help out so dont hate

Answer 2

if you're melting.... I'd suggest some ice cubes, you may want to get some kool-aid with it too

Answer 3

\(\bf A=P\left(1+\frac{r}{n}\right)^{nt}
\\ \quad \\
A=\textit{current amount}\\
P=\textit{original amount deposited}\to \$1000\\
r=rate\to 5\%\to \frac{5}{100}\to 0.05\\
n=\textit{times it compounds per year, quarterly means}\to 4\\
t=years\to 6
\\ \quad \\
A=1000\left(1+\frac{0.05}{4}\right)^{4\cdot 6}\)