SOLUTION: Determine the future value of a simple interest investment where 3 % interest paid quarterly for 3 years on $700. My daughter is using the equation A=P(1+rt) so far we have A

Question 884146: Determine the future value of a simple interest investment where 3 % interest paid quarterly for 3 years on $700.
My daughter is using the equation A=P(1+rt)
so far we have A =700(1+.03) but having trouble figuring out the time. Could you explain how to figure out the time please? thanks! Sue
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
Determine the future value of a simple interest investment where 3 % interest paid quarterly for 3 years on $700.
First,
A=P(1+rt)
is for "simple interest" (interest paid yearly).
This problem says it is paid "quarterly" (4 times per year)
You must use the "compound interest" formula:
A=P(1+r/n)^(nt)
where
n = 4
r = .03
t = 3
P = 700
.
A = 700(1+.03/4)^(4*3)
A = 700(1+0.0075)^12
A = 700(1.0075)^12
A = $765.66
.
RELATED QUESTIONS
A couple bought some stock for $40 per share that pays an annual dividend of $0.80 per... (answered by Boreal,MathTherapy)

determine the present value you must invest to have a future value of $8,500 when the... (answered by rfer)

1) Find the future value of a simple interest loan of $4,000 at 5.5% interest for 7... (answered by Theo,MathTherapy)

Find the future value on a savings account with a principle of $4700 at 4% simple... (answered by Theo)

3. Use a financial calculator or computer software program to answer the following... (answered by Theo)

The future value of a simple interest investment is given by S=P(1+rt). What principal P... (answered by tommyt3rd)

1. If you lend $3600 to a friend for 15 months at 10% annual simple interest, find the... (answered by stanbon)

Question 1. How long will it take for an investment to double at 7%p.a. compounded... (answered by Boreal)

using the formula for simple interest I=PRT determine the interest paid on a loan in the... (answered by jim_thompson5910)