SOLUTION: Juan Raśl's savings account has a balance of $4069. After 4 years what will the amount of interest be at 5% compounded quarterly?

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Question 207514: Juan Raśl's savings account has a balance of $4069. After 4 years what will the amount of
interest be at 5% compounded quarterly?
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
savings account has a balance of $4069.
After 4 years what will the amount of interest be at 5% compounded quarterly?
:
Compound interest formula
A = Ao*(1+(r/n))^(nt)
where
A = final amt
Ao = initial amt (4069)
r = interest rate in decimals (.05)
n = time per yr (4)
t = no. of yrs (4)
:
A = 4069+%2A+%281%2B%28.05%2F4%29%29%5E%284%2A4%29
:
A = 4069+%2A+%281.0125%29%5E%2816%29
:
A = 4069 * 1.220
:
A = 4963.73; amt after 4 yrs
:
4963.73 - 4069 = $894.73 interest in 4 yrs