Question

brody opened a savings account and deposited 1,000.00 as principal the account earns 15% interest compounded quarterly what is the balance after 7 years

Answer 1

The final amount is,

`\begin{gathered} A=P(1+(R)/(n*100))^(7n) \\ \text{Here, P is principal, R is rate, T is time in years, n is number of times interest is compounded} \end{gathered}`

Here, P=1000, R=15%, T=7, n=4. Substitute values in equation.

`\begin{gathered} A=1000(1+(15)/(4*100))^(7*4) \\ \text{ =1000(1+}(15)/(400))^(28) \\ \text{ =}2803.28 \end{gathered}`

Balance after 7 years is 2803.28.