Question

A bank features a savings account that has an annual percentage rate of 3.4% with interest compounded quarterly. Ashley opens one of these brand new savings accounts and deposits $2,000 into the account. What is her account balance after 4 years, rounded to the nearest cent?

Answer 1

$2,290.05

Step-by-step explanation:

Principle, P = $2,000

Rate of interest, r = 3.4%

Time period, t = 4 years

n = 4

Therefore,

`Amount=P(1+(r)/(n))^(nt)`

`Amount=2,000(1+(3.4)/(400))^(4* 4)`

`Amount=2,000(1+(3.4)/(400))^(16)`

= $2,290.05

Hence, account balance after 4 years is $2,290.05.