SOLUTION: $1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 is this right, thansk for checking.

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Question 45867This question is from textbook Finite math
: $1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 is this right, thansk for checking. This question is from textbook Finite math

Answer by AnlytcPhil(1807) About Me  (Show Source):
You can put this solution on YOUR website!
$1800 is invested at 10% compounded quarterly for four years. Find the amount
at the end of four years. My answer is $2520.00 is this right, thank for
checking.

No, I'm afraid it's wrong.  You used the SIMPLE interest formulas i = Prt and
A = P + i.  You must consider the fact that this is COMPOUND interest, not
SIMPLE interest, and that the compounding is done 4 times a year.  You must 
use this COMPOUND interest formula instead:

A = P(1 + r/n)nt

where A = 1800, r = .10, n = 4 (for quarterly, 4 times per year), t = 4 (years)

A = 1800(1 + .10/4)(4×4) = 1800(1 + .025)16 = 1800(1.025)16 = 2672.110117

So your answer should be $2672.11

Edwin