Answer:
A = 2900 + 1
Explanation:
The Murphys have been saving for a vacation for five years, investing $2900 in an account with a 1.48% annual interest rate, compounded quarterly. To determine the future value, the following formula is used:
P = A + r / n / (nt).
P = the initial investment amount,
r = the yearly interest rate,
n = how many times the interest is compounded each year,
t = how many years the investment will last.
To calculate the amount of compound interest, the formula is: P = A = P + r / (n + 1.48%) / (n / 1.48%). To multiply the amount by a factor of two, the result is A = 2900 + 1