natashagarcia05
natashagarcia05 natashagarcia05
  • 03-07-2018
  • Mathematics
contestada

Suppose $2000 is deposited in an account paying 3.5% interest compounded quarterly. What will the account balance be after 14 years?

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jdoe0001 jdoe0001
  • 03-07-2018
[tex]\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$2000\\ r=rate\to 3.5\%\to \frac{3.5}{100}\to &0.035\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\to &4\\ t=years\to &14 \end{cases} \\\\\\ A=2000\left(1+\frac{0.035}{4}\right)^{4\cdot 14}\implies A=2000(1.00875)^{56} \\\\\\ A\approx 3257.681852590698[/tex]
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