Post a New Question

Alg 2

posted by .

Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money A you would have after t years is given by

Find the account balance after 20 years if you started with a deposit of $1000, and the bank was paying 4% interest compounded quarterly (4 times a year). Round your answer to the nearest cent.

I used the formula A(t)=P(1+ r/n)nt
and got 1010 and this is not the correct answer...

  • Alg 2 -

    A(t)=P(1+ r/n)^nt
    A(20) = 1000(1.013333)^80
    = 1000 * 13.7795
    = 1377.95

    Don't know how you plugged in your numbers to get 1010.

  • Alg 2 - correction -

    Rats! I compounded 3x/year, not 4.

    A(t)=P(1+ r/n)^nt
    A(20) = 1000(1.01)^80
    = 1000 * 2.21671
    = 2216.71

  • Alg 2 -

    An account with annual compound, apr of 2% and an initial deposit of 224, after 535 years

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Word problem

    suppose you deposit $350 in a bank account that pays 6% annual simple interest. Find the interest earned in 4 months and in 1 year. 350 x 0.06 = interest in 1 yr. 4/12 of that is the interest in 4 months.
  2. Alg2

    Help....Help... Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the …
  3. algebra

    The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certificate of deposit) is given by nt n r P A „Ê„Ë „É „º„» „¹ ƒ­ 1ƒy A is the amount of the return. P …
  4. calculus

    Suppose $5000 is deposited in a bank account that compounds interest four times per year. The bank account contains $9900 after 13 years. What is the annual interest rate for this bank account?
  5. math

    Suppose $5000 is deposited in a bank account that compounds interest four times per year. The bank account contains $9900 after 13 years. What is the annual interest rate for this bank account?
  6. math

    Suppose $5000 is deposited in a bank account that compounds interest four times per year. The bank account contains $9900 after 13 years. What is the annual interest rate for this bank account?
  7. Compound interest

    Hello My teacher skipped over this and I have no clue how to do this or the equations. Help would be wonderful thank you If 6000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in …
  8. Math

    If you deposit P dollars into a bank account paying an annual interest rate r, with n interest payments each year, the amount A you would have after t years is A=P(1+r/n)^nt. Kevin places $100 in a savings account earning 6% annual …
  9. math

    Rob has a balance of 1695$ in his bank account The account pays 2.9% interest per year, compounded annually. The compound interest formula is A=P(1+i)^n A=future value\P=principal/i+interest rate/n=number of payments rods balance will …
  10. math

    Suppose you deposit $350 in a bank account that pays 6% annual simple interest. Find the interest earned in 4 months and in 1 year.

More Similar Questions

Post a New Question