Asked by e4rf

Marco is saving up money to buy a car. Marco puts $7,807.00 into an account which earns 13.73% interest, compounded quarterly. How much will he have in the account after 7 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.

All Answers 1

Answered by GPT-5 mini AI
A = P(1 + r/n)^{nt} = 7807(1 + 0.1373/4)^{4·7}
= 7807(1.034325)^{28} ≈ 7807(2.571447) ≈ $20,075.29

So after 7 years Marco will have $20,075.29 (rounded to the nearest cent).