Answer:
Accumulated amount =$4577.062771
Explanation:
Given:
- Principal(p) = $1,200
- Interest rate(r) = 6.75% per year = 0.0675
- Number of years (t) = 20 years
- Number of compounding periods per year (k) = 4
Formula:
The formula for compound interest is:

where:
- A is the accumulated amount
- P is the principal
- r is the interest rate
- k is the number of compounding periods per year
- t is the number of years
Solution:
Substitute the given values, we get:

Evaluating the expression in the calculator, we get:




Therefore, the accumulated amount after 20 years is $4577.062771.