Question

liam deposits $2400 into an account that earns 8.3% interest compounded quarterly. how much money will liam have in 5 years.

Answer 1

Total = 2,400 * (1 + (.083/4))^4*5

Total = 2,400 * (1.02075)^20

Total = 2,400 * 1.5079528829

Total = 3,619.09

Explanation:

Answer 2

$3,619.09

Explanation:

liam deposits $2400 into an account that earns 8.3% interest compounded quarterly.

Compound interest formula is

`A= P(1+ (r)/(n) )^(n*t)`

where A is the final amount

P is the initial amount deposited

r is the rate of interest

n is the compounding period

t is the time in years

P= 2400, r= 8.3%= 0.083, t=5, n=4 (quarterly)

Plug in all the values

`A= 2400(1+ (0.083)/(4) )^(4*5)`

A= 3619.09