Question

Find the amount in the account for the given principal interest rate, time, and compounding period . P=\$600 , r=6\% , t = 9 years ; compounded quarterly

Answer 1

The amount in the account for the given principal P=$600, interest rate, r=6% , time t = 9 years ; compounded quarterly n = 4 is $1026

Explanation:

We are given:

Principal Amount P=$600

Interest rate r = 6% = 0.06

Time t = 9 years

Compounded quarterly n = 4

We need to find future value A.

The formula used is:
`A=P(1+(r)/(n))^(nt)`

Putting values and finding future value

`A=P(1+(r)/(n))^(nt)\\A=600(1+(0.06)/(4))^(9*4)\\A=600(1+0.015)^(36)\\A=600(1.015)^(36)\\A=600(1.71)\\A=1026`

So, the future value A = $1026

The amount in the account for the given principal P=$600, interest rate, r=6% , time t = 9 years ; compounded quarterly n = 4 is $1026