Q:

4(5a²b³)^2 / (2x³y^5)4 show your workYou invest $15,000 in a savings account with an annual interest rate of 2.5% in which the interest is compounded quarterly. How much money should you expect to have in the account after 5 years? Show your work

Accepted Solution

A:
Answer:Step-by-step explanation:1) 4(5a²b³)^2 / (2x³y^5)4Opening the parenthesis in the denominator, it becomes4(5a²b³)^2 / 8x³y^5Recall: (b^x)^y = b ^(xy)It becomes4(5^2a^4b^6) / 8x³y^54×25a^4b^6) / 8x³y^5= 100a^4b^6) / 8x³y^52) Initial amount invested into the account is $15000 This means that the principal is P, so P = 15000It was compounded quarterly. This means that it was compounded 4 times in a year. Son = 4The rate at which the principal was compounded is 2.5%. So r = 2.5/100 = 0.025It was compounded for 5 years. Sot = 5The formula for compound interest is A = P(1+r/n)^ntA = total amount in the account at the end of t years. Therefore A = 15000 (1+0.025/4)^4×5A = 15000 (1+0.00625)^20A = 15000 (1.00625)^20A = 16990.62Approximately $16991