Question

Tim invested $25,000 to a company at an interest rate of 6.2% compound quarterly. write an equation

Answer 1

`A=25,000(1+(.062)/(4))^((4)t)`

Explanation:

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

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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Since the balance is compounded quarterly, the number
`4` will be used for n.

Now lets plug in the values into the equation:

`A=25,000(1+(.062)/(4))^((4)t)`