Question

$1,500 are deposited into an account with a 7% interest rate, compounded quarterly.

Find the accumulated amount after 5 years.

Hint: A=P(1+r/k)kt

Answer 1

Explanation:

Answer 2

$2122.17

Explanation:

Principal/Initial Value: P = $1500

Annual Interest Rate: r = 7% = 0.07

Compound Frequency: k = 4

Period of Time: t = 5

`\displaystyle A=P\biggr(1+(r)/(k)\biggr)^(kt)\\\\A=1500\biggr(1+(0.07)/(4)\biggr)^(4(5))\\\\A\approx\$2122.17`