BUSINESS, FUR1 2003 VCAA 7 MC

Lim invested `$8000` in an investment account, earning `r text(%)` interest per annum, compounding quarterly.
The balance in dollars, after `5` years, is given by

A. `8000(1 + r/100)^5`

B. `8000(1 + r/100)^20`

C. `8000(1 + r/400)^5`

D. `8000(1 + r/400)^20`

E. `8000(1 + r/1200)^60`

Show Answers Only

`D`

Show Worked Solution

`text(Using)\ \ A = PR^n`

`P = 8000`

`R`	`= 1 + r/(4 xx 100)`
	`= 1 + r/400`

`n`	`= 5 xx 4`
	`= 20`

`:.\ A = 8000(1 + r/400)^20`

`=> D`