# college math

Cindy deposited \$1,000 in an account that pays 12% interest compounded quarterly. How much money will Cindy have in the account after 7 years?

1. 7*4 = 28 periods
r = 12/4 = 3% per period

1000 * (1.03)^28 = 2287.93

posted by Damon
2. A = P(1+(r/n))^(nt)

A=Amount present after interest compounded
P=Initial Deposit
r=rate expressed as decimal
n=# of times interest is received in one year. (Look for keywords: quarterly = 4)
t=timespan of investment

A=1000(1+(0.12/4))^(4*7)
A=\$2287.93

posted by Mike

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