Question

Solve the problem. Find the amount of money in an account after 12 years if $4700 is deposited at 5% annual interest compounded quarterly. $8501.01 $8440.52 $8553.29 $8532.17

Answer 1

The correct answer is $8532.17

Explanation:

The formula for calculating investments with compound interests is as follows:

`(1+(R)/(t))^(tn)*P`

Where:

R is the annual interest rate,

t is the number of times the investment is to be compounded in a year,

n is the number of years,

P is the principal amount invested.

Replacing in the formula with the given values you have:

`(1+(0.05)/(4))^(4*12)*4700 = 8532.1678`