Posted by **patrice** on Saturday, April 24, 2010 at 7:00pm.

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?

- college math -
**Damon**, Saturday, April 24, 2010 at 9:23pm
7*4 = 28 periods

r = 12/4 = 3% per period

1000 * (1.03)^28 = 2287.93

- college math -
**Mike**, Sunday, April 25, 2010 at 6:18pm
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.

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