SOLUTION: Lorena is investing a $5000 inheritance from her aunt in a certificate of deposit that matures in 4 years. The interest rate is 6.25% compounded quarterly. What is the balance of t
Algebra.Com
Question 1038455: Lorena is investing a $5000 inheritance from her aunt in a certificate of deposit that matures in 4 years. The interest rate is 6.25% compounded quarterly. What is the balance of the account after 4 years?
$5,078.13
$5,319.90
$5,321.82
$6,407.73
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
^{nt})
where 
is the future value, 
is the present value or invested principal, 
is the decimal representation of the annualized interest rate, 
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
RELATED QUESTIONS
Lorena is investing a $5000 inheritance from her aunt in a certificate of deposit that... (answered by solver91311)
A savings certificate of $1700 pays 4.5% annual interest compounded yearly. What is the... (answered by ewatrrr)
How much money in dollars should a person deposit in a 6-months certificate of deposit CD (answered by ikleyn)
You deposit $9,200 in a 2-year certificate of deposit (CD) earning 2.4% annual interest... (answered by Boreal)
Madison invested in a certificate of deposit for 4 years at a 6% interest rate. At the... (answered by Boreal)
A mother wants to invest $6,000.00 for her son's future education. She invests a portion (answered by mananth)
Trish invests $5000 in her IRA in a bond trust that pays 7% interest... (answered by Boreal)
Bob invests 5000 euros in a fixed deposit that pays a nominal annual interest rate of... (answered by Theo,MathTherapy,ikleyn)
Find how much interest $15,000 earns in 4 years in a certificate of deposit paying 8.5%... (answered by ewatrrr,lynnlo)