SOLUTION: A credit union client deposits $900 in an account earning 9.5% interest, compounded quarterly. What will the balance of the account be at the end of 19
years?
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Question 891591: A credit union client deposits $900 in an account earning 9.5% interest, compounded quarterly. What will the balance of the account be at the end of 19
years?
Enter the answer in dollars and cents, and round to the nearest cent, if needed. Do not include the dollar sign. For example, if the answer is $0.61, only the
number 0.61 should be entered.
Balance $ ____________after 19 years.
Answer by LinnW(1048) (Show Source): You can put this solution on YOUR website!
An annual interest rate paid quarterly means
that each quarter, 9.5% / 4 is applied each quarter.
This is 2.375%
Since we are compounding for 19 years we will have
19*4 = 76 compounding periods
So the amount in the account after 19 years is
(900)*(1.02375)^76 = 5357.72
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