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Use the formula for compound amount to find the compound amount:$28,000 at 9% compounded quarterly for 1 year

User Dudu
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Solution:

Given:


\begin{gathered} P=\text{ \$28,000} \\ r=9\text{ \% = }(9)/(100)=0.09 \\ t=1\text{year} \\ n=4 \end{gathered}

To get the compound amount, we use the compound interest formula;


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

Substituting the given values into the formula;


\begin{gathered} A=28000(1+(0.09)/(4))^(4*1) \\ A=28000(1+0.0225)^4 \\ A=28000(1.0225)^4 \\ A=28000*1.0225^4 \\ A=\text{ \$30,606.33} \end{gathered}

Therefore, the compound amount is $30,606.33

User Brandon Yang
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