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Brooke Puts 400.00 into an account to use for school expenses the account earns 14%interest compounded quarterly how much will be in the account after 5 years

User Gwt
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1 Answer

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According to the problem, the principal is 400, the interest rate is 14%, the time is 5 years, and it's compounded quarterly which means there are 4 compound periods each year.

We have to use the compound interest formula.


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

Replacing the given values, we have.


\begin{gathered} A=400(1+(0.14)/(4))^(4\cdot5) \\ A=400(1+0.035)^(4\cdot5) \\ A=400(1.035)^(20) \\ A\approx795.92 \end{gathered}

Hence, after 5 years, there will be $795.92, approximately.

User Aleien
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