SOLUTION: Suppose you deposit $2000 into an account earning 5% intrest compound quarterly. To the nearest dollar, what is the balance after 4 years?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Suppose you deposit $2000 into an account earning 5% intrest compound quarterly. To the nearest dollar, what is the balance after 4 years?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 636161: Suppose you deposit $2000 into an account earning 5% intrest compound quarterly. To the nearest dollar, what is the balance after 4 years?
Answer by Tatiana_Stebko(1539) About Me  (Show Source):
You can put this solution on YOUR website!
Formula FV=P%281%2Br%2Fn%29%5E%28nt%29
P=2000-present value
r=5%2F100=0.05 - annual nominal interest rate (as a decimal, not in percentage)
n=4 number of times the interest is compounded per year
t=4 number of years
FV=2000%2A%281%2B0.05%2F4%29%5E%284%2A4%29=2440