Question 736388: How much money would be in an account if $ 2,500 is deposited at 5.5% interest compounded quarterly and the money is left for 9 years.
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! How much money would be in an account if $ 2,500 is deposited at 5.5% interest compounded quarterly and the money is left for 9 years.
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Compound Interest Formula: A=P(1+r)^n, P=initial investment, r=interest rate per period, n=number of periods, A=amount after n periods
For given problem:
P=2500
r=.055/4=0.01375
n=9*4=36
..
A=2500(1+.01375)^36
=2500(1.01375)^36
=4087.44
How much money would be in the account: $4087
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