SOLUTION: Find the final amount of money in an account if $4,700 is deposited at 3% interest compounded quarterly (every 3 months) and the money is left for 6 years. The final amount is $_

SOLUTION: Find the final amount of money in an account if $4,700 is deposited at 3% interest compounded quarterly (every 3 months) and the money is left for 6 years. The final amount is $__

Question 1102443: Find the final amount of money in an account if $4,700 is deposited at 3% interest compounded quarterly (every 3 months) and the money is left for 6 years.
The final amount is $_____. Round answer to 2 decimal places
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
f = p * (1+r)^n

f is the future value
p is the present value
r is the interest rate per time period.
n is the number of time periods.

there are 4 quarters in a year.

3% interest per year compounded quarterly gives you 3% / 4 = .75% interest rate per quarter.

.75% interest rate per quarter is equal to .0075 interest rate per quarter.

.0075 is the decimal equivalent of .75%.

the decimal equivalent of the percent is what is used in the formula.

6 years * 4 quarters per year = 24 quarters.

you are given that p = 4700

the equation of f = p * (1+r)^n becomes:

f = 4700 * (1.0075)^24

solve for f to get:

f = 5623.143588

if you are given the yearly interest rate and the number of years, then the formula can also be shown as:

f = p * (1 + r/c) ^ (nc)

f is the future value
p is the present value
r/c is the yearly interest rate divided by the number of compounding periods per year.
nc is the number of years multiplied by the compounding periods per year.

your formula would have become f = 4700 * (1 + .03/4) ^ (6*4)

this would have resulted in f = 5623.143588 which is the same answer as what was previously calculated above.

RELATED QUESTIONS
Find the final amount of money in an account if $4,300 is deposited at 3.5% interest... (answered by Boreal)

Find the final amount of money in an account if $6,100 is deposited at 8% interest... (answered by Shin123)

Find the final amount of money in an account if P3 ,500 is deposited at 3% interest... (answered by mananth,MathTherapy)

Find the final amount of money in an account if $6,700 is deposited at 5% interest... (answered by ikleyn)

find amount of money in an account after 7 years if $2400 is deposited at 6% annual... (answered by jim_thompson5910)

Find the final amount of money in account if 7900 is the deposit at 3% interest compound... (answered by MathLover1)

Find the amount of money in account after 6 years if $4500 is deposited at 7% annual... (answered by ewatrrr)

Find the amount of money in an account after 3 years if $1400 is deposited at 4%... (answered by rfer)

Find the amount of money in an account if $2000 is deposited at 4% interest compounded... (answered by robertb)