SOLUTION: Darrin deposited $1800 into an account that compounds quarterly at 5%. Which formula could he use to find the balance of his account after4 years? Assume that Darrin does not make

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Darrin deposited $1800 into an account that compounds quarterly at 5%. Which formula could he use to find the balance of his account after4 years? Assume that Darrin does not make       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 600611: Darrin deposited $1800 into an account that compounds quarterly at 5%. Which formula could he use to find the balance of his account after4 years? Assume that Darrin does not make additional deposits nor does he withdraw any of the funds.
A) A=1800(1-.04/4)^4(4)
B) A=1800(1-.05/4)^4
C) A=1800(1+.5/4)^4(4)
D) A=1800(1+.5/4)^4
E) A=1800(1+.05/4)^4(4)
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Use the formula A=P%281%2Br%2Fn%29%5E%28nt%29, where P = 1800, r = 0.05, n = 4, and t = 4 to get


A=P%281%2Br%2Fn%29%5E%28nt%29


A=1800%281%2B0.05%2F4%29%5E%284%2A4%29


So the answer is choice D