Mathematics: 3. how much interest does $5300 earn at a rate of 2.8% interest compounded quarterly after 6 months? ?

3. how much interest does $5300 earn at a rate of - id3530021831711, isabelperez063

raulflores01

31.12.2021

The interest is $I=\$74.46$

Step-by-step explanation:

we know that

The compound interest formula is equal to

$A=P(1+\frac{r}{n})^{nt}$

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

$t=6/12=0.5\ years\\ P=\$5,300\\ r=0.028\\n=4$

substitute in the formula above

$A=5,300(1+\frac{0.028{4})^{4*0.5}$

$A=5,300(1.007)^{2}$

$A=\$5,374.46$

Find the interest

I=A-P

substitute

$I=\$5,374.46-\$5,300=\$74.46$

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