SOLUTION: Victor opens a savings account with $600. The account pays 5 1/2% interest, compounded quarterly. If he makes no other deposits or withdrawals, how much will Victor have in his acc

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: Victor opens a savings account with $600. The account pays 5 1/2% interest, compounded quarterly. If he makes no other deposits or withdrawals, how much will Victor have in his acc      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 312115: Victor opens a savings account with $600. The account pays 5 1/2% interest, compounded quarterly. If he makes no other deposits or withdrawals, how much will Victor have in his account after 9 months?
I need to know step by step how you got the answer please
Answer by nerdybill(7384) About Me  (Show Source):
You can put this solution on YOUR website!
Victor opens a savings account with $600. The account pays 5 1/2% interest, compounded quarterly. If he makes no other deposits or withdrawals, how much will Victor have in his account after 9 months?
.
A = P(1 + r/n)^(nt)
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
.
Plug in what was given and solve for t:
A = 600(1 + .055/4)^(4*(9/12))
A = 600(1 + .055/4)^(9/3))
A = 600(1 + .055/4)^3)
A = 600(1.01375^3)
A = $625.09