SOLUTION: how much money will Jamie have in 3 years if he invests $5000 at a 3.85% annual rate of interest compounded annually? How much will he have if it is compounded quarterly?

Question 543164: how much money will Jamie have in 3 years if he invests $5000 at a 3.85% annual rate of interest compounded annually? How much will he have if it is compounded quarterly?
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
how much money will Jamie have in 3 years if he invests $5000 at a 3.85% annual rate of interest compounded annually? How much will he have if it is compounded quarterly?
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compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amount after n periods.
..
Compounded annually:
A=5000(1+.0385)^3
A=$5600.02
..
Compounded quarterly:
A=5000(1+.0385/4)^3*4
A=5000(1+.009625)^12
A=5000(1.009625)^12
A=$5609.07
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