Question

Ann deposited $4000 into an account with 5.2 interest, compounded quarterly. Assuming that no withdrawals are made, how much will she have in the account after 3 years?

Answer 1

P=principal ($4000) or present value
r=interest rate per period (5.2% p.a.= 1.3% per quarter)
n=number of periods (3*4 quarters = 12)

Amount after 3 years (future value)
=P(1+r)^n
=4000(1.013)^12
= ?

Answer 2

Chris deposited $4,000 into an account with 2.6% interest, compounded quarterly. Assuming that no withdrawals are made how much will he have in the account after 4 years?