SOLUTION: Suppose that you invest$217 in an account that earns interest at an APR of 6%, compounded quarterly. Determine the accumulated balance after 16 years. a) $566.74 b) $565.38 c) $

Question 987897: Suppose that you invest$217 in an account that earns interest at an APR of 6%, compounded quarterly. Determine the accumulated balance after 16 years.
a) $566.74
b) $565.38
c) $562.71
d) $551.26
e) None of these (explain)
Found 2 solutions by solver91311, macston:
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

Where is the future value, is the initial principal, is the annual interest rate expressed as a decimal, is the number of compounding periods per year, and is the number of years. Plug in your numbers and do the arithmetic.

John

My calculator said it, I believe it, that settles it

Answer by macston(5194) (Show Source): You can put this solution on YOUR website!
.
FV=Future value; P=principal (amount invested); r=rate per period
t=number of periods
.
FV=P(1+r)^t
FV=217(1+0.015)^64=$562.71
.
ANSWER: The accumulated value after 16 years is $562.71. Answer (c).
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