SOLUTION: find amount of money in an account after 7 years if $2400 is deposited at 6% annual interest compounded quarterly.

Question 692423: find amount of money in an account after 7 years if $2400 is deposited at 6% annual interest compounded quarterly.
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Start with the compound interest formula

Plug in , (the decimal equivalent of 6%), and .

Evaluate to get

Add to to get

Multiply and to get .

Evaluate to get .

Multiply and to get .

Round to the nearest hundredth (ie to the nearest penny).

So $3,641 will be in the account after 7 years.
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Jim

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