SOLUTION: Don Fletcher has a $1,500 CD that earns 6% annual interest with the interest compounded quarterly. Find his balance when the CD matures in 2 years.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Don Fletcher has a $1,500 CD that earns 6% annual interest with the interest compounded quarterly. Find his balance when the CD matures in 2 years.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1179253: Don Fletcher has a $1,500 CD that earns 6% annual interest with the interest compounded quarterly. Find his balance when the CD matures in 2 years.
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Find Amount
Principal P = 1500
Amount= A
years=n 2.00
compounded 4 times a year t
Rate = 6.00------> 0.06------r/n = 0.06/4 =0.015
Amount = P*((n+r/n)^n*t

Amount = = 1500 *( 1 + 0.015 )^4*2
Amount = 1500 *( 1 + 0.015 )^ 8
1500 *( 1.015 )^ 8.00
Amount = $1689.74