Question

Solve these compound interest problems and round your answer to the nearest 100th.

1)Find the final amount for an $1800 investment at 8% interest compounded quarterly for 6 years.

PLEASE SHOW ALL WORK>

Answer 1

$2,895.19

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

First, change 8% into its decimal form:

8% ->
`(8)/(100)` -> 0.08

Now lets plug in the values into the equation:

`A=1,800(1+(0.08)/(4) )^(6(4))`

`A=2,895.19`

The final amount for this investment is $2,895.19