7*4 = 28 periods
r = 12/4 = 3% per period
1000 * (1.03)^28 = 2287.93
Cindy deposited $1,000 in an account that pays 12% interest compounded quarterly. How much money will Cindy have in the account after 7 years?
2 answers
A = P(1+(r/n))^(nt)
A=Amount present after interest compounded
P=Initial Deposit
r=rate expressed as decimal
n=# of times interest is received in one year. (Look for keywords: quarterly = 4)
t=timespan of investment
A=1000(1+(0.12/4))^(4*7)
A=$2287.93
Confirms Damon's answer.
A=Amount present after interest compounded
P=Initial Deposit
r=rate expressed as decimal
n=# of times interest is received in one year. (Look for keywords: quarterly = 4)
t=timespan of investment
A=1000(1+(0.12/4))^(4*7)
A=$2287.93
Confirms Damon's answer.
2 answers