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10 votes
How much money will there be in an account at the end of 7 years if $4000 is deposited at 6% interest

compounded quarterly? (Assume no withdrawals are made.)

2 Answers

4 votes

Answer:

$10,720.00

Explanation:

User Kevin Thompson
by
3.5k points
4 votes

9514 1404 393

Answer:

$6068.89

Explanation:

The compound interest formula tells you the amount will be ...

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

for principal P at annual rate r compounded n times per year for t years.

FV = $4000(1 +.06/4)^(4·7) = $4000(1.015^28) ≈ $6068.89

There will be $6068.89 in the account at the end of 7 years.

User Seb Holzapfel
by
4.2k points