Question

you deposit $5,200 in an account that earns 3.2% interest that is compounded quarterly. what is the account balance after 7 years?

Answer 1

A = $6,499.77

Explanation:

First, convert R as a percent to r as a decimal

r = R/100

r = 3.2/100

r = 0.032 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 5,200.00(1 + 0.032/4)(4)(7)

A = 5,200.00(1 + 0.008)(28)

A = $6,499.77