A principal of $480 is invested in an account paying an annual interest rate of 12%. Find the amount in the account after 6 years if the account is compounded quarterly.
(I've tried plugging the numbers in but i must be doing something wrong because i come up with crazy answers, and thank you to anyone who helps me)
2007-06-05 18:00:07 · 2 answers · asked by Alana 3 in Education & Reference ➔ Homework Help
A = P(1+r) ^(nt)
Principle: $480
r = 12% (given annual rate)
n= 4 (compounded quarterly, four periods where the interest is compounded)
A = ($480)*(1.03)^(24)
A = $975.74
2007-06-05 18:07:18 · answer #1 · answered by ≈ nohglf 7 · 0⤊ 0⤋
Your investment (ie thought) is $8,000. this is p=8,000 Your fee is 9%. this is r=.09 it slow is 4. this is t=4. you could then use the A=Pe^rt formula to resolve, and you get A as your answer.
2016-11-05 02:13:16 · answer #2 · answered by ? 4 · 0⤊ 0⤋