SOLUTION: Suppose Karen has $1000 that she invests in an account that pays 3.5% interest compounded quarterly. How much money does Karen have at the end of 5 years?
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Question 1129003: Suppose Karen has $1000 that she invests in an account that pays 3.5% interest compounded quarterly. How much money does Karen have at the end of 5 years? Found 2 solutions by rothauserc, josmiceli:Answer by rothauserc(4718) (Show Source):
You can put this solution on YOUR website! The compund interest formula is
:
A = P(1 +r/n)^(nt), where 'A' is the amount of money after 't' years compounded 'n' times at interest rate 'r' with starting amount 'P'
:
Note n = 4 because the rate is compounded quarterly
:
A = 1000(1 +0.035/4)^(4*5) = 1190.3397
:
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At the end of 5 years Karen has $1190.34
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