Question

Suppose $2000 is deposited in an account paying 2.5% interest compounded quarterly. What will the account balance be after 12 years?

Answer 1

A =

`p(1 + (r)/(n))^(nt)`
p = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year


`2000(1 + (.025)/(4))^(4 * 12)`
$2,697.20