A $10,000 investment earned interest at 4.5% compounded quarterly for 1 year and 5.5% compounded quarterly for the next year. What is the amount in the account at the end of 2 years?

Explanation:

We use this formula for compound interest

A = P*(1 + r/n)^(n*t)

The variables are,

For the first year, we have this set of values

Which leads to this

A = P*(1 + r/n)^(n*t)

A = 10,000*(1 + 0.045/4)^(4*1)

A = 10,457.6508633057 approximately

A = 10,457.65 after rounding to the nearest cent

This value of A will be the new deposit value P when we do another round of calculations. For the second round, we have

So,

A = P*(1 + r/n)^(n*t)

A = 10,457.65*(1 + 0.055/4)^(4*1)

A = 11,044.7927637434

A = 11,044.79

There is $11,044.79 in the account after 2 years.

For each case, the value of n = 4 stays the same (since both rounds are compounding quarterly, aka 4 times a year). Also, we have t = 1 the same because each timespan is 1 full year.

Side note: The total amount of interest earned is 11,044.79 - 10,000 = 1,044.79 dollars.

the correct answer is b) histograms can be used to exhibit the shape of distributions. this is because histograms count the frequency of each possible answer, so one is able to see which results are more common and which are less common.

step-by-step explanation: