SOLUTION: Anthony deposits $2500 in a savings account that pays 4.5% interested compounded quarterly. How much will he have after 2 years? 4 years?

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Question 1174610: Anthony deposits $2500 in a savings account that pays 4.5% interested compounded quarterly. How much will he have after 2 years? 4 years?
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

First, convert R percent to r+a decimal
r+=+R%2F100
r+=+4.5%2F100
r+=+0.045 per year,
n=2 years

Then, solve our equation for A
A+=+P%281+%2B+r%2Fn%29%5E%28%28nt%29%29
A+=+2500.00%281+%2B+0.045%2F4%29%5E%28%284%2A2%29%29
A+=+2734.06
Summary:
The total amount accrued, principal plus interest from compound interest on an original principal of $ 2500.00 at a rate of 4.5% per year compounded 4 times per year over 2 years is $+2734.06.


r+=+R%2F100
r+=+4.5%2F100
r+=+0.045 per year,
n=4 years


Then, solve our equation for A
A+=+P%281+%2B+r%2Fn%29%5E%28%28nt%29%29
A+=+2500.00%281+%2B+0.045%2F4%29%5E%28%284%2A4%29%29
A+=+2990.04
Summary:
The total amount accrued, principal plus interest from compound interest on an original principal of $ 2500.00 at a rate of 4.5% per year compounded 4 times per year over 4 years is $+2990.04.