Question

Find the amount A accumulated after investing $4800 for 17 years at an interest rate 6.2% compounded quarterly.​

Answer 1

A = $13,660.81

Explanation:

P (principal) = $4,800.00

I (interest) = $8,860.81

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

r = R/100

r = 6.2/100

r = 0.062 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 4,800.00(1 + 0.062/4)(4)(17)

A = 4,800.00(1 + 0.0155)(68)

A = $13,660.81