SOLUTION: an initial investment of $12,000 is appreciated at 2 years in an account that earns 5% interest, compounded quarterly. Find the amount of money in the account at the end of the per

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Question 816622: an initial investment of $12,000 is appreciated at 2 years in an account that earns 5% interest, compounded quarterly. Find the amount of money in the account at the end of the period.
Answer by erica65404(394) About Me  (Show Source):
You can put this solution on YOUR website!
we will use the equation
P+=+A%281+%2B+%28r%2Fn%29%29%5E%28n%2At%29
A equals the amount invested
r equals the rate or percentage
n equals the number of times compounded in one year
t equals the number of years it will be invested

P+=+12000%281+%2B+%28.05%2F4%29%29%5E%284%2A2%29
P+=+13253.83
The money in the bank after 2 years will be $13,253.83