Question

Katie opened a savings account and deposited 1,000.00 as principal the account earns 4% interest compounded quarterly what is the balance after 6 years

Answer 1

P = $1000

r = 4% = 4/100 = 0.04

t = 6 years

Therefore,

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ A=1000(1+(0.04)/(4))^(4*6) \\ A=1000*1.26973464853 \\ A=1269.73464853 \\ A=\text{ \$1269.73} \end{gathered}`