Question

Use the appropriate compound interest formula to compute the balance in the account after the stated period of time $13,000 is invested for 7 years with an APR of 4% and quarterly compounding

Answer 1

Explanation:

Compound Interest Formula

The Amount A after t years due to a principle P invested at an annual interest rate r compounded n times per year

Compounded Quartely means 4 times per year

A = P(1 + r/n)^nt

A= 13000(1 + 0.04/4)^4(7)

A = 13000(1 + 0.01)^28

A = 13000(1.01)^28

A = 13000(1.321290967)

A = 17176.78|257

A ≈ 17,176.78