SOLUTION: How much money would you have in a savings account at the end of one year, if you saved $1000 at two percent interest compounded quarterly? Round to the nearest dollar
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Question 957463: How much money would you have in a savings account at the end of one year, if you saved $1000 at two percent interest compounded quarterly? Round to the nearest dollar Found 2 solutions by stanbon, addingup:Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How much money would you have in a savings account at the end of one year, if you saved $1000 at two percent interest compounded quarterly? Round to the nearest dollar
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A(1) = 1000(1 + (0.02/4))^(4*1)
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A(1) = 1000(1.005)^4
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A(1) = 1000*1.02015
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A(1) = $1020.15
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Cheers,
Stan H.
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You can put this solution on YOUR website! The Future Value of your investment would be: where:
C= your present Capital, the amount you invest. In your case 1000.
r= annual rate
n= number of periods, in your case 4 compounding periods per year (quarterly)
t= is the time, in your case 1 year. Using your numbers:
(