Question

Whitney deposited $2,400,000 into an account in which interest is compounded quarterly at a rate of 2.9%. She made no other deposits or withdrawals. What was the amount after 12 years?

A $2,470,532.59


B $7,471,532.89


C $2,617,330.43


D $3,394,692.90

Answer 1

Explanation:

amount = principle* (1 + (r/n) ) ^ (n*t)

amount = 2,400,000*[ 1 + (0.029 / 4 ) ] ^ (.029*12)

amount = 2,400,000* [ 1 + .00725 ] ^0.348

amount = 2,406,0400