Question
Find the balance in the account after the given period.
$500 principal earning 4% compounded quarterly, after 6 yr
a. $1,281.65
b. $634.87
c. $709.26
d. $632.66
$500 principal earning 4% compounded quarterly, after 6 yr
a. $1,281.65
b. $634.87
c. $709.26
d. $632.66
Answers
Henry
P = Po(1+r)^n.
Po = $500, r = (4%/4)/100% = 0.01
= Quarterly % rate expressed as a deci8mal.
n = 4Comp./yr. * 6yrs = 24 Compounding periods.
P = ?.
Po = $500, r = (4%/4)/100% = 0.01
= Quarterly % rate expressed as a deci8mal.
n = 4Comp./yr. * 6yrs = 24 Compounding periods.
P = ?.
Snow
$634.87.
noo
$634.87
noo
conert 4% to decimal= .04
quarterly= 4 so the problem would go
a=p(1+r/n)^nt
a=500(1+.04/4)^4x6
500(1.01)^24
500(1.26973)
634.865 but round to 634.87 :)
answer: 634.87
quarterly= 4 so the problem would go
a=p(1+r/n)^nt
a=500(1+.04/4)^4x6
500(1.01)^24
500(1.26973)
634.865 but round to 634.87 :)
answer: 634.87