SOLUTION: Find the balance of the account. The problem is: $3,800 principal earning 2% compounded quarterly after 7yrs. I understand how to figure an equation that earns annually but not

Find the balance of the account. The problem is: $3,800 principal earning 2%

compounded quarterly after 7yrs. I understand how to figure an equation that

earns annually but not sure what # to use for quarterly interest Tk you

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The formula is



where

A = balance in the account after t years

P = the original (starting) amount in the account

r = the interest rate expressed as a decimal, not a percent

n = the number of times per year the interest is accrued

t = the number of years 



In your problem

A = ? 

P = $3800, starting amount

r = .02 (2% expressed as a decimal)

n = 4 (times a year, since it's compounded quarterly)

t = 7 (the number of years





becomes



A = $4360.515918 which rounded to the nearest penny is $4360.52

Edwin J