Question 675210
A person saves €4,429 in a bank account at the end of each quarter. The bank offers a return of 4.3% p.a compounded quarterly. How much will this investment be worth after 8 years?
<pre>
You multiply the years by 4, not divide.  But your answer is very 
close to the actual answer, €6235.99. Perhaps you are rounding off
too much or not using a scientific calculator.

The formula is

A = P(1 + {{{r/n}}})<sup>nt</sup>

where

A = final amount = ?
P = beginning amount = €4,429
r = rate expressed as a decimal = 0.043
n = the number of times per year the interest is compounded = 4 (quarterly)
t = the number of years = 8

A = P(1 + {{{r/n}}})<sup>nt</sup>

A = 4429(1 + {{{0.043/4}}})<sup>4·8</sup>

A = 4429(1 + 0.01075)<sup>32</sup>

A = 4429(1.01075)<sup>32</sup>

A = 6235.993882

Round to nearest cent and put an euro mark in front:

Answer:  €6235.99

Edwin</pre>