Dylan invested $7,200 in an account paying an interest rate of 2.3% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 12 years?

Answer 1

To calculate the future value of the investment, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years the money is invested for

In this case:
P = $7,200
r = 2.3% = 0.023
n = 4 (quarters in a year, so compounded quarterly)
t = 12 years

Plugging in the values:
A = $7,200(1 + 0.023/4)^(4*12)
A = $7,200(1 + 0.00575)^48
A = $7,200(1.00575)^48
A = $7,200(1.3949)
A = $10,024.43

After 12 years, there would be approximately $10,024 in the account.

Answer 2

is this correct

Answer 3

I apologize for the error in my previous calculation. Let's correct that.

Given:
P = $7,200
r = 2.3% = 0.023
n = 4
t = 12 years

The formula for compound interest is A = P(1 + r/n)^(nt)

Plugging in the values:
A = $7,200(1 + 0.023/4)^(4*12)
A = $7,200(1 + 0.00575)^48
A = $7,200(1.00575)^48
A = $7,200(1.30721)
A = $9,408.67

Therefore, after 12 years, there would be approximately $9,408.67 in the account.