Question

Calculate the compound amount when $9000 is deposited in an account earning 9% interest, compounded quarterly, for 8 years. (Round your answer to two decimal places.)

Answer 1

For this case we can use the following formula:

`A=P(1+(r)/(n))^(nt)`

where A= future value

P= 9000, r= 0.09, t= 8yr

n= 4 (since the interest is compounded quarterly)

Then if we replace we got:

`A=9000(1+(0.09)/(4))^(4\cdot8)=18342.93`

then the amount rounded would be 18342.93