SOLUTION: Suppose that you invest$217 in an account that earns interest at an APR of 6%, compounded quarterly. Determine the accumulated balance after 16 years.
a) $566.74
b) $565.38
c) $
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-> SOLUTION: Suppose that you invest$217 in an account that earns interest at an APR of 6%, compounded quarterly. Determine the accumulated balance after 16 years.
a) $566.74
b) $565.38
c) $
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Question 987897: Suppose that you invest$217 in an account that earns interest at an APR of 6%, compounded quarterly. Determine the accumulated balance after 16 years.
a) $566.74
b) $565.38
c) $562.71
d) $551.26
e) None of these (explain) Found 2 solutions by solver91311, macston:Answer by solver91311(24713) (Show Source):
Where is the future value, is the initial principal, is the annual interest rate expressed as a decimal, is the number of compounding periods per year, and is the number of years. Plug in your numbers and do the arithmetic.
John
My calculator said it, I believe it, that settles it
You can put this solution on YOUR website! .
FV=Future value; P=principal (amount invested); r=rate per period
t=number of periods
.
FV=P(1+r)^t
FV=217(1+0.015)^64=$562.71
.
ANSWER: The accumulated value after 16 years is $562.71. Answer (c).
