Question

PLEASE HELP ME After 3 years what is the total amount of an investment of $1500 in an account paying 3.5% interest, compounded quarterly?

Answer 1

`A(t)=1500(1+(.035)/(4))^((4)(3))`Answer:

Explanation:

Use the formula

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

where A(t) is the amount after the compounding is done, r is the interest rate in decimal form, P is the initial investment amount, n is the number of times it compounds per year, and t is the time in years. For us,

A(t) = ?

r = .035

P = 1500

n = 4

t = 3

Therefore,

`A(t)=1500(1+(.035)/(4))^((4)(3))` and

`A(t)=1500(1.00875)^(12)` and

A(t) = 1500(1.11020345) so

A(t) = $1665.31