SOLUTION: find amount of money in an account after 7 years if $2400 is deposited at 6% annual interest compounded quarterly.

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Question 692423: find amount of money in an account after 7 years if $2400 is deposited at 6% annual interest compounded quarterly.
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=2400%281%2B0.06%2F4%29%5E%284%2A7%29 Plug in P=2400, r=0.06 (the decimal equivalent of 6%), n=4 and t=7.


A=2400%281%2B0.015%29%5E%284%2A7%29 Evaluate 0.06%2F4 to get 0.015


A=2400%281.015%29%5E%284%2A7%29 Add 1 to 0.015 to get 1.015


A=2400%281.015%29%5E%2828%29 Multiply 4 and 7 to get 28.


A=2400%281.51722218009741%29 Evaluate %281.015%29%5E%2828%29 to get 1.51722218009741.


A=3641.33323223378 Multiply 2400 and 1.51722218009741 to get 3641.33323223378.


A=3641.33 Round to the nearest hundredth (ie to the nearest penny).


So $3,641 will be in the account after 7 years.
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Jim

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