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Which of the following equations describes the amount of money, A, that results from investing a principal of $900 at 5% interest, compounded 5 times a year, over a period of t years.

 

 

Select one:

a. A=900(0.05)^5t

b. A=900(1.01)^t

c. A=900(1.05)^t

d. A=900(1.01)^5t

 Feb 21, 2019
 #1
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FV = PV x [ 1 + R]^N

FV =$900 x [1 + (5%/5)]^(t*5)

FV=$900 x [1 + (0.05/5)^5t

FV=$900 x [1.01]^5t - The correct answer is "d"

 Feb 21, 2019

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