At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

A money market account pays 5.3% interest
compounded quarterly. What will be the balance
in the account after 5 years if $12,000 is invested?

A. $18,360.00
B. $15,613.98
C. $15,180.00
D. $14,544.00


Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$12000\\ r=rate\to 5.3\%\to \frac{5.3}{100}\dotfill &0.053\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &5 \end{cases} \\\\\\ A=12000\left(1+\frac{0.053}{4}\right)^{4\cdot 5}\implies A=12000(1.01325)^{20}\implies A\approx 15613.98[/tex]

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.