Question

Na

You deposit $5000 in a savings acount for 8 years You earn interest at a rate of 4% compunded
quarterly. At the end of the 8 years, how much money in total will be in the account? Give your
answer rounded to 2 decimal places and do not use a S.​

Answer 1

6,874.70

Explanation:

You are going to want to use the compound interest formula, which is shown below.

`P(1+(r)/(n) )^(nt)`

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Now lets plug in the values into the equation.

`5,000(1+(0.04)/(4))^(8(4))` = 6,874.70

Your answer is 6,874.70.