SOLUTION: Use the compound interest formulas A = P(1 + r/n)^nt and A = Pe^rt to solve. Find the accumulated value of an investment of $900 at 10% compounded quarterly for 5 years.

Algebra ->  Functions -> SOLUTION: Use the compound interest formulas A = P(1 + r/n)^nt and A = Pe^rt to solve. Find the accumulated value of an investment of $900 at 10% compounded quarterly for 5 years.      Log On


   

Question 1179944: Use the compound interest formulas A = P(1 + r/n)^nt and A = Pe^rt to solve.
Find the accumulated value of an investment of $900 at 10% compounded quarterly for 5 years.
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!

Principal P = 900
Amount= A
years=t 5.00
compounded 4 times a year n
Rate = 10.00 0.1 0.025
Amount = P*((n+r)/n)^n*t

Amount = = 900 *( 1 + 0.025 )^ 4 * 5.00
Amount = 900 *( 1 + 0.025 )^ 20
900 *( 1.025 )^ 20.00
Amount = 1474.75