Using compound interest, it is found that the correct options are:
1. True.
2. True.
Compound interest:
[tex]A(x) = P\left(1 + \frac{r}{n}\right)^{nx}[/tex]
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
- x is the time in years for which the money is invested or borrowed.
Item 1:
- Invested 10000, hence [tex]P = 10000[/tex].
- Semi-annually, hence [tex]n = 2[/tex].
- Interest rate of 5%, hence [tex]r = 0.05[/tex]
Then:
[tex]A(x) = P\left(1 + \frac{r}{n}\right)^{nx}[/tex]
[tex]A(x) = 10000\left(1 + \frac{0.05}{2}\right)^{2x}[/tex]
[tex]A(x) = 10000(1.025)^{2x}[/tex]
Hence option 1 is True.
Item 2:
- Quarterly, hence [tex]n = 4[/tex].
Then:
[tex]A(x) = P\left(1 + \frac{r}{n}\right)^{nx}[/tex]
[tex]A(x) = 10000\left(1 + \frac{0.05}{4}\right)^{4x}[/tex]
[tex]A(x) = 10000(1.0125)^{4x}[/tex]
Hence option 2 is also True.
A similar problem is given at https://brainly.com/question/24507395