Posted by **katie** on Friday, September 2, 2011 at 4:48pm.

You deposit $2200 in an account that pays 3% annual interest. After 15 years, you withdraw the money, what is the balance if the interest is compounded quarterly?

so I figure you would get 2650.00 help please

- math -
**MathMate**, Friday, September 2, 2011 at 6:26pm
What you probably did was calculated *simple* interest for 15 years on $1000 and added to $2200 to give $2650.

Compound interest formula are based on the number of *periods*, n, the interest was compounded.

The interest being compounded 4 times a year, so there are 15*4=60 periods of 3 months each. The corresponding interest rate for *each* period is therefore r = 3%/4=0.0075.

The formula for the future value using compound interest is:

FV = Principal * (1+r)^n

=2200*1.0075^60

=2200*1.565681

=$3444.50

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