If A is the initial amount put into an account, P is the annual percentage rate of interest, which remains fixed, and the account compounds quarterly, which of the following is an expression, in terms of A and P, for the amount in the Account after 5 years?

A 4A (p100) 5

B A (p100) 20

C 4A (1+p100) 5

D A (1+p25) 20

E A (1+p400) 20

Question

Mathematics

Shiloh Brennan

19 October, 06:35

If A is the initial amount put into an account, P is the annual percentage rate of interest, which remains fixed, and the account compounds quarterly, which of the following is an expression, in terms of A and P, for the amount in the Account after 5 years?

A 4A (p100) 5

B A (p100) 20

C 4A (1+p100) 5

D A (1+p25) 20

E A (1+p400) 20

+1

Answers (1)

Know the Answer?

Ashly Hendrix · Answer 1

Answer: The amount in the account is A = A (1 + P/400) ^20

Step-by-step explanation:

Initial amount deposited into the account is A. This means that the principal is A, so

P = A

It was compounded quarterly. This means that it was compounded once in four months. So

n = 4

The rate at which the principal was compounded is P%. So

r = P/100

It was compounded for a total of 5 years. So

n = 5

The formula for compound interest is

A = P (1+r/n) ^nt

A = total amount in the account at the end of n years.

Let A = B

B = A (1 + (P/100) / 4) ^4*5

A = A (1 + P/400) ^20