Find the amount in the bank after 7 years if interest is compounded quarterly? Find the amount in the bank after 7 years if interest is compounded monthly?

a) amount in the bank after 7 years if interest is compounded quarterly is $6,605

b) amount in the bank after 7 years if interest is compounded quarterly is $6,612.57

Step-by-step explanation:

We are given:

Principal Amount P= 5000

Rate r= 4% = 0.04

time t = 7 years

The formula used is:

where A is future value, P is principal amount, r is rate, n is compounded value and t is time

a) Find the amount in the bank after 7 years if interest is compounded quarterly?

If interest is compounded quarterly then n = 4

Using values given in question and finding A

So, amount in the bank after 7 years if interest is compounded quarterly is $6,605

b) Find the amount in the bank after 7 years if interest is compounded monthly?

If interest is compounded quarterly then n = 12

Using values given in question and finding A

So, amount in the bank after 7 years if interest is compounded quarterly is $6,612.57

(d)

step-by-step explanation:

given: the line in the graph passes through points (5,30) and (6,26).

then, the equation of line is:

now, put y=a(n) and x=n,

hence, option d is correct.