Answer:
[tex]\$5,632.46[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=10-6=4\ years\\ P=\$5,000\\ r=3\%=3/100=0.03\\n=2[/tex]
substitute in the formula above
[tex]A=5,000(1+\frac{0.03}{2})^{2*4}[/tex]
[tex]A=5,000(1.015)^{8}[/tex]
[tex]A=\$5,632.46[/tex]
Answer:
The money available on her 10th birthday is $5627.54
Step-by-step explanation:
Given information:
Principal = $5000
Time = 4 years
Rate of interest = 3%
As we know that the formula for the amount of compound interest
[tex]A=P(1+\frac{r}{100})^n[/tex]
[tex]A=5000(1+\frac{3}{100})^4[/tex]
[tex]A=5000 \times 1.03^4\\A=5000 \times 1.125\\A=5627.54[/tex]
Hence, the money available on her 10th birthday is $5627.54
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