Question

Find the amount of money in an account after 12 years if a principal of $1800 was invested at 4.4% interest compounded quarterly. Round to the nearest cent.

A) $3049.02
B) $3212.25
C) $2971.77
D) $3043.18

Answer 1

The amount of money in the account after 12 years with compound interest is approximately $3043.18.

Step-by-step explanation:

To calculate the amount of money in an account after 12 years with compound interest, we can use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $1800, r = 4.4% or 0.044, n = 4 (quarterly compounding), and t = 12. Plugging in these values, we get A = 1800(1 + 0.044/4)^(4*12), which simplifies to A ≈ $3043.18. Therefore, the correct answer is D) $3043.18.