SOLUTION: if you deposit $2500 for 3 years at a 5.7% interest compounded quarterly, how much money will there be in the acount?

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Question 551881: if you deposit $2500 for 3 years at a 5.7% interest compounded quarterly, how much money will there be in the acount?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!

A=P%281%2Br%2Fn%29%5E%28n%2At%29 Start with the compound interest formula


A=2500%281%2B0.057%2F4%29%5E%284%2A3%29 Plug in P=2500, r=0.057 (the decimal equivalent of 5.7%), n=4 and t=3.


A=2500%281%2B0.01425%29%5E%284%2A3%29 Evaluate 0.057%2F4 to get 0.01425


A=2500%281.01425%29%5E%284%2A3%29 Add 1 to 0.01425 to get 1.01425


A=2500%281.01425%29%5E%2812%29 Multiply 4 and 3 to get 12.


A=2500%281.1850596101584%29 Evaluate %281.01425%29%5E%2812%29 to get 1.1850596101584.


A=2962.64902539601 Multiply 2500 and 1.1850596101584 to get 2962.64902539601.


A=2962.65 Round to the nearest hundredth (ie to the nearest penny).


So there will be $2,962.65 in the acount