SOLUTION: Money and interest problem. Can anyone give me a hand? Thanks! $6000 invested for 5 years at 7% compound interest. Find the final amound on deposit if the interest is compoun

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Question 64951This question is from textbook college algebra
: Money and interest problem. Can anyone give me a hand? Thanks!
$6000 invested for 5 years at 7% compound interest. Find the final amound on deposit if the interest is compounded quarterly.
Thanks! This question is from textbook college algebra

Found 2 solutions by stanbon, 303795:
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
$6000 invested for 5 years at 7% compound interest. Find the final amound on deposit if the interest is compounded quarterly.
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A=P(1+r/n)^(nt)
n is the number of times you compound each year; t is the # of yrs.;
r is the yearly rate; P is the principal or amount you deposit.
A=6000(1+0.07/1)^(1*5)
A=6000(1.07)^5
A=6000(1.40...)
A=$8415.31
Cheers,
Stan H.

Answer by 303795(602) (Show Source):
You can put this solution on YOUR website!

r is the interest rate for one time period and n is the number of time periods. In this case compounding takes place quarterly so the interest rate is 7/4 % (=1.75%) per quarter and there are 20 time periods in 5 years.

=$8488.67