SOLUTION: Bill invested $5902 in an account at 20% compounded quarterly. Calculate the total investment after 1 years. Round your answer to the nearest penny if necessary

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Question 1034703: Bill invested $5902 in an account at 20% compounded quarterly. Calculate the total investment after 1 years. Round your answer to the nearest penny if necessary
Found 2 solutions by addingup, josmiceli:
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
5902*(1+.20/4)^(4*1)= 7,173.92

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Compound interest formula:
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
In this problem:
+P+=+5902+
+r+=+.2+
+n+=+4+
+t+=+1+
---------------
+A+=+5902%2A%28+1+%2B+.2%2F4+%29%5E%284%2A1%29+
+A+=+5902%2A1.05%5E4+
+A+=+5902%2A1.21551+
+A+=+7173.918+
After 1 year, the total is $7,173.92
---------------
check:
+7173.92+=+5902%2A1.05%5E4+
+1.2155+=+1.2155+
OK