math

You deposit $2200 in an account that pays 3% annual interest. After 15 years, you withdraw the money, what is the balance if the interest is compounded quarterly?

so I figure you would get 2650.00 help please

  1. 2
asked by katie
  1. What you probably did was calculated simple interest for 15 years on $1000 and added to $2200 to give $2650.

    Compound interest formula are based on the number of periods, n, the interest was compounded.

    The interest being compounded 4 times a year, so there are 15*4=60 periods of 3 months each. The corresponding interest rate for each period is therefore r = 3%/4=0.0075.

    The formula for the future value using compound interest is:
    FV = Principal * (1+r)^n
    =2200*1.0075^60
    =2200*1.565681
    =$3444.50

    posted by MathMate

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    you deposit $2200 in an account that pays 3% annual interest. after 15 years, you withdraw the money. what is the balance if the interest is compounded continuously?
  2. math

    you deposit $2200 in an account that pays 3% interest, after 15 years you withdraw, what is the balance if the interest is compounded continuously
  3. math

    This problem has to do with exponential models. The question says, you deposit $1600 in a bank account. Find the balance after 3 years for each of the following situations. The first one says: 1. The account pays 2.5% annual
  4. Engineering Econonmy

    You decide to open an IRS-approved retirement account at your local brokerage firm. Your best estimate is that it will earn 9 percent. At the end of each year for the next 25 years, you will deposit $4000 per year into the account
  5. Finance

    You deposit $1000 for 5 years at 4% annual interest. In 5 years, you add $10000 to your account, but the rate on your account changes to 8% annual interest (for existing balance and new deposit). You leave the account untouched
  6. Algebra

    Suppose that you deposit $1735.50 in a savings account that pays 9.25% annual interest with interest created to the account at the end of each year. Assuming no withdrawals are made, find the balance in the account after 4 years
  7. math

    Suppose that you deposit $1735.50 in a savings account that pays 9.25% annual interest with interest credited to the account at the end of each year. Assuming no withdrawals are made, find the balance in the account after 4 years
  8. Algebra 2

    Suppose you deposit $1500 in a savings account that pays interest at an annual rate of 6%. No money is added or withdrawn from the account. How many years will it take for the account to contain $2500?
  9. math

    Samantha opened a savings account and deposited some money into the account. The account pays an annual simple interest rate of 5%. After 9 years, the interest earned on the account was $1,800. How much money did Samantha deposit
  10. math

    If you have a savings of $2235 and deposit the amount into an account that pays 2% annual interest, compounded monthly, what is the balance in the account after 4 years?

More Similar Questions