Question

Find the amount that is in the account if $3150 is compounded quarterly at 6% for 5 years

Answer 1

The answer is 4242.60 dollers

Answer 2

$4242.60

Explanation:

Principal, P = $3150

Rate = 6% = 0.06

Period, t = 5 years

Number of times compounded in a year, n = 4

Amount, A = P( 1 + r/n)^tn

A = 3150( 1 + 0.06/4)^ 5*4

A = 3150( 1 + 0.015 )^20

A = 3150( 1.015) ^20

A = 3150 *1.3468

A = $4242.60