SOLUTION: A savings account earns interest at an annual rate of 4%, compounded quarterly. If the account begins with a principal amount of $4000, what will its value be after 3 years? A=P(

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Question 182043This question is from textbook saxon algebra 2
: A savings account earns interest at an annual rate of 4%, compounded quarterly. If the account begins with a principal amount of $4000, what will its value be after 3 years?
A=P(1+ 0.04/4)^4(3)
A=$4502.32
Am I Correct?This question is from textbook saxon algebra 2

Answer by user_dude2008(1861) (Show Source):
You can put this solution on YOUR website!
"A savings account earns interest at an annual rate of 4%, compounded quarterly. If the account begins with a principal amount of $4000, what will its value be after 3 years?"

-----------> P=4000, r=0.04, n=4, t=3

A=P(1+ r/n)^(n*t)

A=4000(1+ 0.04/4)^(4*3)

A=4000(1.01)^(12)

A=4,507.30

you will have $4,507.30 in the account