Question

Chaz has an account with $ 9 , 200 . He transferred this amount into an account paying 4.9 % annual interest compounded quarterly. How much money will be in the account after 5 years? Round to the nearest cent if necessary.

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$9200\\ r=rate\to 4.9\%\to (4.9)/(100)\dotfill &0.049\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &5 \end{cases} \\\\\\ A=9200\left(1+(0.049)/(4)\right)^(4\cdot 5)\implies A=9200(1.01225)^(20) \implies A \approx 11736.63`