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. 👍 0
  2. 👎 0
  3. 👁 767
  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

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    You can deposit 10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 1o

    asked by Sky on September 16, 2011
  2. algebra

    Four different accounts are described below. Order the accounts according to their values after 20 years, from greatest to least. 1.You deposit 1500$ in an account that earns 5% annual interest compounded quarterly. 2. You deposit

    asked by audrey on March 10, 2020
  3. Math help! Check my answers ASAP!

    1. Which graph most likely describes the distance a person walks in a 24-hour period? (1 point) a. Graph IV** b. Graph II c. Graph I d. Graph III 2. A car traveling at 25 mi/h accelerates to 48 mi/h over the first 5 seconds. It

    asked by Cutie Pie on March 14, 2017
  4. Math , check my answer ?

    Lynne invested $35,000 into an account earning 4% annual interest compounded quarterly. She makes no other deposits into the account and does not withdraw any money. What is the balance of Lynne's account in 5 years? $37,153.21

    asked by Lia on January 4, 2017
  5. pre-algebra

    You split $1500 between two savings accounts. Account A pays annual 5% interest and Account B pays 4% annual interest. After one year,you have earned a total of $69.50 in interest. How much money did you invest in each account?

    asked by em on January 24, 2013
  1. Alg 2

    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

    asked by rock on December 13, 2011
  2. Finance

    You want to be able to withdraw $25,000 from your account each year for 20 years after you retire. If you expect to retire in 25 years and your account earns 7% interest while saving for retirement and 6.7% interest while retired

    asked by Andy on April 27, 2016
  3. math

    suppose you deposit $3000 in a savings account that pays interest in a a rate of 4%. if no money is added or withdrawn from the account, how much will be in the account after ten years.

    asked by brandon on November 9, 2015
  4. matlab

    One bank pays 5.5 percent annual interest, while a second bank pays 4.5 percent annual interest. Determine how much longer it will take to accumulate at least $50 000 in the second bank account if you deposit $1000 initially and

    asked by sean on October 29, 2011
  5. Algebra 1

    You have $6000 to invest in two stock funds. The first fund pays 5% annual interest and the second account pays 9% annual interest. If after a year you have made $380 in interest, how much money did you invest in each account?

    asked by Mbaintu on January 21, 2013
  6. Finance

    You deposit $1000 in an account that pays 8% interest compounded semiannually. After 2 years, the interest rate is increased to 8.40% compounded quarterly. What will be the value of the account after 4 years?

    asked by Kelly on November 6, 2011

You can view more similar questions or ask a new question.