Question

Tina invests $3,700 into an account with a 4.4% interest that is compounded quarterly. How much money will she have in this account if she keeps it for 8 years?

Round your answer to the nearest cent.
Do NOT round until you have calculated the final answe

Answer 1

$ 5250.96

Explanation:

FV = PV ( 1 + i)^n

FV = future value PV = present value = 3700

i = annual decimal interest per PERIOD (.044/4)

n = number of periods = 8 * 4 = 32 periods

FV = 3700 ( 1 + .044/4)^32 = 5250.96