Question

4.Jonathan deposite $8,000.00 cd accont that pays 2.4% interest compound quarterly. What is his balance after 9 months (3 quarters)

Answer 1

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

P is the principal, in this case $8000

r is the iterest rate, in this case 2.4%, in decimal numbers, so 0.024

n is the number of cycles, 1 per quarter

t is the time, in this case 3 quarters

using the formula:

A = 8000(1 + 0.024/1)^((1) (3)) = 8000(1.024)^3

A = 8000 (1.07374) =8589.9345

So the answer is $8,589.93