SOLUTION: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly. a. How much will the account be worth if you invest $500 for 3 years? b. What i

Algebra.Com
Question 920469: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly.
a. How much will the account be worth if you invest $500 for 3 years?
b. What is the APY of this account?
c. How much should you invest now in order to have an account valve of $25,000 in 15 years?
d. How long will it take $2000 to triple in value?

Answer by ewatrrr(24785)   (Show Source): You can put this solution on YOUR website!
In General
A = Accumulated Amount
P= principal =
r= annual rate = .
n= periods per year =
t= years =

A = 500(1.004)^(12)
....

P = 25000/(1.004)^(60)
.......

log(3)/4log(1.004) = t

RELATED QUESTIONS

You deposit $300at the end of each month into an account earning 8% interest... (answered by ikleyn)
joe invested $5000 in an account that pays 8% annual interest compounded quarterly. how... (answered by ewatrrr)
Suppose you have $4230 in an account that earn 6% interest compounded quarterly. How much (answered by ikleyn,MathTherapy)
$960 is deposited at the end of every three months into an account that pays 5.1%... (answered by ikleyn)
Assume that you make quarterly payments of $700 into an annuity paying 8% interest... (answered by MathLover1)
An investor deposits $400 into a bank account that earns an annual interest rate of 8%.... (answered by lynnlo)
Francisco invested $5,000 into an account that earns 3% compounded quarterly. How many... (answered by ewatrrr)
a. For their newborn child, parents deposit $10,000 in a college account that pays 8%... (answered by Boreal)
Over 2 years, how much more does $2000 in a savings account with an APR of 5.2%... (answered by TimothyLamb)