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Kara invests $3,200 into an account with a 3.1% interest rate that is compounded quarterly. How much money will be in this account after 8 years?

User Mahshid
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Answer:

We can use the formula for compound interest to solve this problem:

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

where:

A = the amount of money in the account after t years

P = the principal amount (initial investment)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the number of years

Plugging in the given values:

P = $3,200

r = 0.031 (3.1% as a decimal)

n = 4 (quarterly compounding)

t = 8

A = 3200(1 + 0.031/4)^(4*8)

A = $4,100.53

Therefore, after 8 years, there will be $4,100.53 in the account.

User Scav
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