Question

Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years

Answer 1

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

A(4)=2500(1+(0.04/4))^(4*4)
A(4) = 2500(1.01)^16
A(4) = 2500*1.1726
A(4) = $2931.45

Answer 2

$2941.45 will be the balance.

Explanation:

Formula to find the final amount after 4 years with compound interest is

`A=A_(0)[1+(r)/(n)]^(nt)=2500[1+.04/4]^(4.4)=2500(1.01)^(16)`

= 2500×1.173 = $2931.45

Therefore $2931.45 is the final amount.