SOLUTION: Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years.

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Question 662221: Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years.
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Compound Interest Formula:
A(t) = P(1+(r/n))^(nt)
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Your Problem:
A(4) = 2500(1+(0.04/4))^(4*4
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A(4) = 2500(1.01)^16
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A(4) = 2500*1.1726
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A(4) = $2931.45
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Cheers,
Stan H.