Posted by **Amy ** on Tuesday, April 9, 2013 at 5:00am.

An initial investment of $12,000 is invested for 2 years in an account that earns 4% interest compounded quarterly. Find the amount of mnoey in the account at the end of the period.

- UOG -
**Henry **, Wednesday, April 10, 2013 at 7:02pm
P = Po(1+r)^n.

Po = $12,000

r = (4%/4)/100% = 0.01 = Quarterly % rate expressed as a decimal.

n = 4Comp./yr. * 2yrs. = 8 Compounding periods.

Plug the above values into the given Eq.

and get $12,994.28.

## Answer This Question

## Related Questions

- Algebra - An initial investment of $480 is invested for 4 years in an account ...
- pre calc - An initial investment of $12,000 is appreciated for 5 years in an ...
- algebra - An initial investment of $480 is appreciated for 7 years in an account...
- Math - An initial investment of $1000 is appreciated for 8 years in an account ...
- math - An initial investment of $1240 is appreciated for 17 years in an account ...
- college math - An initial investment of $1000 is appreciated for 4 years in an ...
- Math - Using the compound interest formula A = P (1+ ((r)/ (n)) ^nt Find the ...
- Algebra - Use the compound interest formula $18,000 is invested in an account ...
- Math - Use the compound interest formula to solve: $18,000 is invested in an ...
- Algebra ASAP - Suppose that $17,000 is invested in a savings account paying 5.1...

More Related Questions