SOLUTION: Tessa invests $5500 in a new savings account which earns 4.2% annual interest, compounded quarterly. What will be the value of her investment after 7 years? Round to the nearest ce

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: Tessa invests $5500 in a new savings account which earns 4.2% annual interest, compounded quarterly. What will be the value of her investment after 7 years? Round to the nearest ce      Log On


   

Question 1140858: Tessa invests $5500 in a new savings account which earns 4.2% annual interest, compounded quarterly. What will be the value of her investment after 7 years? Round to the nearest cent.
Found 2 solutions by josmiceli, ikleyn:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+A%5B0%5D%2A%28+1+%2B+r%2Fn+%29%5E%28+n%2At+%29+
+A%5B0%5D+=+5500+
+r+=+.042+
+n+=+4+
+t+=+7+
------------------
+A+=+5500%2A%28+1+%2B+.042%2F4+%29%5E%28+4%2A7+%29+
+A+=+5500%2A%28+1+%2B+.0105+%29%5E28+
+A+=+5500%2A1.33973+
+A+=+7368.51+
$7,368.51 after 7 yrs
-------------------------
check:
+A+=+A%5B0%5D%2A%28+1+%2B+r%2Fn+%29%5E%28+n%2At+%29+
+7368.51+=+5500%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
+1.33973+=+%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
Checks with what I have
OK

Answer by ikleyn(52858) About Me  (Show Source):
You can put this solution on YOUR website!
.
Future value = 5500%2A%281%2B0.042%2F4%29%5E%287%2A4%29 = 7368.51  dollars.


The formula is self-explanatory.