A $2,000 deposit at an APR of 5.4% with quarterly compounding for 8 years. The amount after 8 years ?? I need to find what the amount would be after 8 years please help
This not Dave my name is Tommy I don't even know who Dave is and I'm sorry if you think I am I don't know how to solve these . My dad would get really mad he is the president of Harvard lol so you can see I'm in a tight squeeze.
I just did this though
MATH HELP - Damon, Sunday, January 27, 2013 at 8:43pm
.054/4 = .0135
that is your quarterly rate so every 3 months multiply by
1.0135
1.0135^32 = 1.53589
so multiply 2,000 by that. 3071.78
Please check the ones that are already done, whoever they are for. (at the bottom of the screen)
No worries, Tommy! I'm here to help you out with the calculation.
To find the amount after 8 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount after t years
P = the initial deposit or principal amount ($2,000 in this case)
r = the annual interest rate expressed as a decimal (5.4% = 0.054)
n = the number of times interest is compounded per year (quarterly compounding means n = 4)
t = the number of years (8 years in this case)
Now, let's plug in the values:
A = 2000(1 + 0.054/4)^(4*8)
First, divide the annual interest rate by the compounding frequency:
0.054/4 = 0.0135
Next, raise the result to the power of the number of compounding periods:
(1 + 0.0135)^(4*8) ≈ 1.7117
Finally, multiply the result by the principal amount:
A = 2000 * 1.7117 ≈ $3,423.40
Therefore, after 8 years of quarterly compounding at a 5.4% annual interest rate, your deposit of $2,000 would grow to approximately $3,423.40.