Question
Asked Oct 29, 2019

[Consumers Mathematics: Accumulation Factor Method]

As a 50th birthday present to his wife , a husband deposited P 16800 in her account in investment that pays 5% compounded quarterly. How much will she have in the investment in her 66th birthday.

 

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Expert Answer

Step 1

Given that at 50th birthday present to his wife , a husband deposited P 16800 in her account in investment that pays 5% compounded quarterly.

Step 2

Using formula

nt
r
A = P 1
where
P initial investment
A Final investment
t time period
r interest
n number of times interest is compounded
per unit t
help_outline

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nt r A = P 1 where P initial investment A Final investment t time period r interest n number of times interest is compounded per unit t

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Step 3

In given pro...

P 16800
A Final investment
t 16 after 16 years}
r 5% (0.05)
n 4 (compounded quarterly)
help_outline

Image Transcriptionclose

P 16800 A Final investment t 16 after 16 years} r 5% (0.05) n 4 (compounded quarterly)

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