Compound interest word problem.

Suppose JJ has $1000 that he invests in an account that pays 3.5% interest compounded quarterly. How much money does JJ have at the end of 5 years?

A= The amount of money earned after a certain length of time.

P= The amount of money you start with, the principal.

r= The interest rate, in decimal.

t= The amount of time over which the interest is compounded.

n= The number of times the interest in compounded in one year.


How do I answer and show work with question, using the formula?

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  1. Everything you need for the formula is given.
    A = 1000
    r = .035
    t = 5
    n = 4

    = 1000(1 + .035/4)^20
    = ....

    you do the button-pushing

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