Posted by katie on Friday, September 2, 2011 at 4:48pm.
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
Related Questions
math - you deposit $2200 in an account that pays 3% annual interest. after 15 ...
math - you deposit $2200 in an account that pays 3% interest, after 15 years you...
math - Samantha opened a savings account and deposited some money into the ...
Finance - You deposit $1000 for 5 years at 4% annual interest. In 5 years, you ...
math - a bank account earns 7% annual interest compounded continuously. you ...
Alg 2 - Suppose you deposit a principal amount of p dollars in a bank account ...
Alg2 - Help....Help... Suppose you deposit a principal amount of p dollars in a ...
Algebra 2 - Suppose you deposit $1500 in a savings account that pays interest at...
pre-algebra - You split $1500 between two savings accounts. Account A pays ...
math - If you have a savings of $2235 and deposit the amount into an account ...
For Further Reading
