SOLUTION: IF DON INVESTS $6000 AT 9% INTREST COMPOUNDED QUATERLY, FIND THE AMOUNT AFTER 7 YEARS

Question 1103381: IF DON INVESTS $6000 AT 9% INTREST COMPOUNDED QUATERLY, FIND THE AMOUNT AFTER 7 YEARS
Found 2 solutions by snoreaylil, math_helper:
Answer by snoreaylil(2) (Show Source): You can put this solution on YOUR website!
to solve you'll first need your equation which would be y=6000(1.09)^x
then you find what 4x7 is because quarterly is 4 times a year 4x7=28
you plug 28 in for x so now your equation is y=6000(1.09)^28
y=6000(11.167)
y=67,002
Don will have $67,002 after 7 years
Answer by math_helper(2461) (Show Source): You can put this solution on YOUR website!
Compounded quarterly �> interest rate must be divided by 4.
The future value F is:

You can sanity check future value problems by using the "rule of 72": it takes roughly '72 divided by the annual interest rate' years for money to double. Here the amount almost doubled in 7 years, and we'd expect it to double in about 72/9 = 8 years, so it passes the sanity check.

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