SOLUTION: On Melissas's 6th birthday, she gets a $3000 CD that earns 4% interest, compounded quarterly. If the CD matures on her 13th birthday, how much money will be available?
Simplify
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Question 547058: On Melissas's 6th birthday, she gets a $3000 CD that earns 4% interest, compounded quarterly. If the CD matures on her 13th birthday, how much money will be available?
Simplify and round to nearest cent.
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The formula for compound interest is
^{nt})
Where
is the future value
is the present value
is the annual rate expressed as a decimal
is the number of compounding periods per year
is the number of years
Plug in the numbers
^{4\,\cdot\,7})
and do the arithmetic. Better yet, let your fingers do the walking across the calculator keys.
John
My calculator said it, I believe it, that settles it
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ok using the formula A=P(1+r/n)^nt
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