Question

Bobby puts $2,050.00 into an account to use for school expenses. The account earns 11% interest, compounded quarterly. How much will be in the account after 4 years?
Use the formula A=P1+
r
n
nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent

Answer 1

A = P(1 + r/n)^{nt} = 2050(1 + 0.11/4)^{4·4} = 2050(1.0275)^{16} ≈ 2050(1.543498) ≈ 3164.17

So the account will have $3,164.17 after 4 years.