SOLUTION: use A=P(1+r/n) or A=Pe^rt to find the balance after 5 years for $1500 invested at 8% compounded quarterly.

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Question 451527: use A=P(1+r/n) or A=Pe^rt to find the balance after 5 years for $1500 invested at 8% compounded quarterly.
Answer by lwsshak3(11628) About Me  (Show Source):
You can put this solution on YOUR website!
use A=P(1+r/n) or A=Pe^rt to find the balance after 5 years for $1500 invested at 8% compounded quarterly.
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The first formula you listed is not written correctly. You forgot the exponent nt. Correctly written it should be: A=P(1+r/n)^nt, where P=initial investment, r=annual interest rate, n= times compounded per year, t=years, and A=amt accumulated after t years. This is the formula I will use.
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A=1500(1+.08/4)^4*5
A=1500(1.02)^20
A=$2228.92
ans:
The balance after 5 years for $1500 invested at 8% compounded quarterly=$2228.92