Question

Find the total amount Suzanne has in a college savings account if $5000 was invested and earned 3% compounded quarterly for six years. Write the answer rounded to the nearest cent. (Three Points)

Answer 1

`A = 598207\ cents`

Step-by-step explanation:

Given

`Principal, P = \$5000`

`Rate, r = 3\%`

`Time, t = 6\ years`

`n = Quarterly =4`

Required

Determine the total amount

This can be calculated by using:

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

Substitute
`P = \$5000`
`r = 3\%`
`t = 6\ years`
`n =4`

So;

`A = 5000 * (1 + (3\%)/(4))^(4* 6)`

Convert percentage to decimal

`A = 5000 * (1 + (0.03)/(4))^(4* 6)`

`A = 5000 * (1 + 0.0075)^(4* 6)`

`A = 5000 * (1.0075)^(4* 6)`

`A = 5000 * (1.0075)^(24)`

`A = 5000 * 1.19641352939`

`A = 5982.06764695`

Since 1 dollar is equivalent to cents, then the above in cents is;

`A = 5982.06764695 * 100`

`A = 598206.764695`

`A = 598207\ cents` --- Approximated