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
Tommy/Dave -- Damon has shown you how to do several of these problems Now it's your turn. You should have learned from his demonstrations.
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 didn't know Harvard was in Kansas.
And you and Dave are using the same computer internet provide address so he must be using your computer or at least by using your wireless connection.
To find the amount after 8 years with quarterly compounding, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = final amount
P = principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case, the principal amount (P) is $2,000, the annual interest rate (r) is 5.4% (or 0.054 as a decimal), the interest is compounded quarterly (n = 4), and the time period (t) is 8 years.
Now, let's substitute these values into the formula and calculate the final amount (A):
A = 2000(1 + 0.054/4)^(4*8)
= 2000(1.0135)^32
≈ 2000(1.4983)
≈ $2,996.60
Therefore, the amount after 8 years with quarterly compounding would be approximately $2,996.60.