# Finance

posted by FinanceQ

You deposit a single amount of \$50,000 in a savings account that pays 7.6% annual interest (compounded quarterly). How much will you have at the end of four and a half years?

1. helper

A(t) = P(1 + r/n)^nt

P = 50,000
r = 0.076
n = 4 (quarterly)
t = 4.5

A(4.5) = 50000(1 + 0.076/4)^(4(4.5))
A(4.5) = 50000(1 + 0.019)^(18)
A(4.5) = 50000(1.019)^(18)
A(4.5) = 50000(1.40325)
A(4.5) = 70,162.50

50,000 + 70,162.50 = 120,162.50

2. helpi

thats must be wrong right?

because i got 50 000 (1+(14/4*100))^(4*4,5) = 70 162.54 after the four and the half year.

Not adding that with 50 000. Because you earned 20 162.54..

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