SOLUTION: Find the balance in an account after 5 years if $2000 is invested at 6% interest compounded quarterly.

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Question 854934: Find the balance in an account after 5 years if $2000 is invested at 6% interest compounded quarterly.
Answer by KMST(5328) About Me  (Show Source):
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Interest would be paid each quarter, and it would be 1.5% (1/4 of 6%) of the balance.
The interest would be balance%2A%281.5%2F100%29=balance%2A0.015 .
Added to the balance, the total (the new balance) is
balance%2Bbalance%2A0.015=balance%2A%281%2B0.015%29=balance%2A1.015 .
After 5 years, interest would have been paid 5%2A4=20 times (4 times a year) and the balance would be
$2000%2A1.015%5E20= $2000%2A1.346855(rounded) = $highlight%282693.71%29