SOLUTION: If you put $1,000 in a savings account with a 5% nominal rate of interest compounded quarterly, what will the investment be worth in 6 years (round to the nearest dollar)? $1,0

Algebra ->  Finance -> SOLUTION: If you put $1,000 in a savings account with a 5% nominal rate of interest compounded quarterly, what will the investment be worth in 6 years (round to the nearest dollar)? $1,0      Log On


   

Question 859114: If you put $1,000 in a savings account with a 5% nominal rate of interest compounded quarterly, what will the investment be worth in 6 years (round to the nearest dollar)?
$1,003
$1,132
$1,228
$1,347

Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount

P= principal = 

r= annual rate = .

n= periods per year = 

t= years =

 A%28t%29+=1000%281%2B.05%2F4%29%5E%284%2A6%29

A = $1347 (to the nearest dollar)