SOLUTION: $1,200 is deposited in an account that pays 6% annual interest, compounded quarterly. Find the balance after five years.

Question 630197: $1,200 is deposited in an account that pays 6% annual interest, compounded quarterly. Find the balance after five years.
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
$1,200 is deposited in an account that pays 6% annual interest, compounded quarterly. Find the balance after five years.
**
compound interest formula: , P=initial investment, i=interest rate per period, n=number of periods, A=amt after n periods.
..
For given problem:
P=1200
i=.06/4=.015
n=5*4=20
..
A=1200(1+.015)^20
A=1200(1.015)^20
using calculator
A≈$1616
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