Answer: $5,828.28
Step-by-step explanation:
Use the Compound Interest formula: [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where
- A is the accrued amount (balance)
- P is the principal (initial amount invested)
- r is the interest rate (in decimal form)
- n is the number of times compounded each year
- t is the time of the investment (in years)
Given: P = 4,900
r = 3.5% (0.035)
n = 2
t = 5
[tex]A=4,900\bigg(1+\dfrac{0.035}{2}\bigg)^{2(5)}\\\\\\.\qquad = 4900(1.0175)^{10}\\\\\\.\qquad = \large\boxed{5,828.28}\\[/tex]
