Homework Help: math

Posted by Anonymous on Monday, August 20, 2012 at 11:59pm.

Find the ending balance in an account that opens with $5,000, earns 2.5% interest compounded quarterly, and is held for 5 years. (Round your answer to the nearest cent.)
$ 1

math - Henry, Wednesday, August 22, 2012 at 8:47pm
P = Po(1+r)^n.

Po = $5000.

r = (2.5%/4) / 100% = 0.00625=Quarterly
% rate expressed as a decimal.

n = 4Comp./yr * 5yrs = 20 Compounding
periods.

Plug the above values into the given Eq.

Answer: P = $5663.54.

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