question 5 (2 points)\nrob deposits $1000 in a savings account at new york state bank that pays 4.4%…

question 5 (2 points)\nrob deposits $1000 in a savings account at new york state bank that pays 4.4% interest compounded quarterly. how much is in his account at the end of 5 years? 0\nblank 1:

question 5 (2 points)\nrob deposits $1000 in a savings account at new york state bank that pays 4.4% interest compounded quarterly. how much is in his account at the end of 5 years? 0\nblank 1:

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years. Here, $P=$1000$, $r = 0.04$ (since $4%=0.04$), $n = 4$ (compounded quarterly), and $t = 5$.

Step2: Substitute values into the formula

$A=1000(1 +\frac{0.04}{4})^{4\times5}$. First, calculate the value inside the parentheses: $\frac{0.04}{4}=0.01$, and $1 + 0.01=1.01$. Then, calculate the exponent: $4\times5 = 20$. So, $A = 1000\times(1.01)^{20}$.

Step3: Calculate $(1.01)^{20}$

Using a calculator, $(1.01)^{20}\approx1.22019$.

Step4: Calculate the final amount

$A=1000\times1.22019=$1220.19$.

Answer:

$1220.19$