Question

8) a) How much money will there be in an account at the end of 6 year if $2000 is deposited at compounded quarterly? Write the formula and show all work.​

Answer 1

$2539.47

10.18722679 (make sure you round this)

Explanation:

a.)

Equation for compound interest:

`AV=P(1+(i)/(n))^(n*t)\\2000(1+(.04)/(4))^(4*6)\\2000(1.01)^(24)\\2539.469297\\`

which rounds to

2539.47

b.)

using the same equation we can write

`3000=2000(1+(.04)/(4))^(4t)\\1.5=1.01^(4t)\\log_(1.01)1.5=4t\\log_(1.01)1.5=(log(1.5))/(log(1.01))=40.7489\\40.7489=4t\\10.18722679=t`

not sure how to round this, so I'll leave that part up to you