Question

Moe invested $2250 in a savings plan. It will pay him 4.6% compounded quarterly. How much money, to the nearest cent, will he have in his savings account after 9 years?

Answer 1

Future amount = $3,443 (Approx)

Explanation:

Given:

Amount invested(P) = $2,250

Interest rate (r) = 4.6% (Compounded quarterly) = 4.6% / 4 = 0.0115

Number of year (n) = 9 years = 9×4 = 36 quarter

Find:

Future amount = ?

Computation:

`Future\ amount =P(1+r)^n\\\\ Future\ amount =2,250(1+0.0115)^(36)\\\\ Future\ amount =2,250(1.0115)^(36)\\\\ Future\ amount =2,250(1+0.0115)^(36)\\\\Future\ amount =3,442.5`

Future amount = $3,443 (Approx)