Respuesta :
Answer: Hence, this investment would be worth of $366.756
Step-by-step explanation:
Since we have given that
Amount he invests = $350
Rate of interest compounded quarterly = 1.5%
Number of years = 50 years = 1.25 quarters
As we know the formula for "Compound Interest ":
[tex]Amount=P(1+\frac{r}{400})^n\\\\Amount=350(1+\frac{1.5}{400})^{12}\\\\Amount=\$366.07[/tex]
For remaining half year, we first find the interest with using the above amount as principal amount.
[tex]Interest=\frac{366.07\tiems 1.5\times 0.5}{4\times 100}\\\\Interest=\$0.686[/tex]
Hence, this investment would be worth of
[tex]366.07+0.686\\\\=\$366.756[/tex]
Answer:
$740 after 50 years.
Step-by-step explanation:
To solve this question we use the formula of compound interest :
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where A = Future amount
P = Principal amount ( $350 )
r = rate of interest 1.5% (0.015)
n = number of compounding in a year (4)
t = time in years (50 years)
Now put the values in the formula
[tex]A=350(1+\frac{0.015}{4})^{(4)(50)}[/tex]
[tex]A=350(1+0.00375)^{200}[/tex]
[tex]A=350(1.00375)^{200}[/tex]
A = 350 × 2.114
A = $739.91 ≈ $740
Investment would be $740 after 50 years.
