An initial investment of $480 is invested for 4 years in an account that earns 16% interest, compounded quarterly. What is the amount of money in the account at the end of the period?
Algebra - drwls, Friday, May 7, 2010 at 11:49am
At 16% interest compounded quarterly, the value of the account increases by a factor 1.04 every three months. That is becasue 1/4 of 16% is (4%) added to it. Four years is 16 quarters. The value of the account is then
$480.00*(1.04)^16 = $899.03
Algebra - Kimberly, Monday, December 20, 2010 at 6:46pm
invest 23,000 in a saving account 4.25 interest compouned quartley
Algebra - oscar, Monday, December 20, 2010 at 8:47pm