Shawnee is putting $3,500 into an account earning 4.85% interest compounded quarterly. she estimates that it will take just over 11 years for this investment to grow to $6,000. which of the following is a true statement? a. shawnee’s estimate of the time is too low. b. shawnee’s estimate of the time is correct. c. shawnee’s estimate of the time is too high. d. shawnee does not have enough information to estimate the time.

b. Shawnee’s estimate of the time is correct

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

Part a)

in this problem we have  

substitute in the formula above

Part b)

in this problem we have  

substitute in the formula above

therefore

Shawnee’s estimate of the time is correct

rick has $1400 and sally has $1500

step-by-step explanation:

to find amount of money rick has after 10 years :

principal = $1000 , time = 10 years , rate = 4% annually

to find amount of money sally has after 10 years :

her friend gives to pay her $50 per year, therefore money she has after 10 years = 50 × 10 = $500

also, sally gets $1000 after 10 years,

therefore, total amount of money sally has after 10 years = 500 + 1000 = $1500

so, after 10 years : rick has $1400 and sally has $1500