Answer :
After 1 year, the bank paid (5.75/4) percent, 4 times.
The value of the investment is (20,000) times (1 + 0.0575/4) to the 4th power.
(1 + 0.0575/4) = 1.014375
That number to the 4th power is 1.05875... (rounded)
The interest alone is (20,000) times (0.05875...) = $1,175.04
The value of the investment is (20,000) times (1 + 0.0575/4) to the 4th power.
(1 + 0.0575/4) = 1.014375
That number to the 4th power is 1.05875... (rounded)
The interest alone is (20,000) times (0.05875...) = $1,175.04
[tex]P = 20,000 \\ R = 5.75 \\ T = 1 \\ I = \frac{PRT}{100} \\ = \frac{20000 * 5.75*1}{100} \\ = 115000/100 \\ = 1150 $[/tex]
