Suppose you deposit $2000 in an account with an annual interest rate of
7% compounded quarterly. Use the formula A=P(1+r/n)^n*t and round each answer to 2 decimal places, if necessary.
a. Find an equation that gives the amount of money in the account after t
years.
A(t)=
b. Find the amount of money in the account after 8 years.
After 8 years, there will be $ in the account.
c. How many years will it take for the account to contain $4000?
It will take years for there to be
$4000 in the account.
d. If the same account and interest were compounded continuously, how much money would the account contain after 8 years?
With continuous compounding interest, there would be $ in the account after 8 years.
 👍
 👎
 👁
 ℹ️
 🚩
1 answer

they told you A=P(1+r/n)^n*t
so, for (a) use the numbers they gave you for P,r,n 👍
 👎
 ℹ️
 🚩
answered by Steve
Answer this Question
Related Questions

College Business
You deposit $3000 each year into an account earning 7% interest compounded annually. How much will you have in the account in 35 years?
 asked by Vanessa
 4,834 views

Interest
You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 years? Use n=12 for monthly compounding,n=4 for quarterly compounding,n=2 for semiannual compounding, and n=1 for annual compounding.)
 asked by JESSICA
 6,700 views

Math
Find how much interest $25,000 earns in 4 years in a certificate of deposit paying 8.5% interest compounded quarterly.
 asked by Josh
 3,369 views

math
Please someone show me how to work this one out? Suppose Caroline is a cinephile and buys only movie tickets. Caroline deposits $3000 in a bank acct that pays an annual interest rate of 20%. You can assume that this interest rate is fixedthat is, it
 asked by nan
 13,438 views

simple interest
A total of $8000 is deposited into two simple interest accounts. On one account, the annual interest rate is 10%, while on the second account the annual simple interest rate is 12%. How much should be invested in the 10% account so that the total annual
 asked by ali
 1,407 views

Financial Math Help? (Determine compound period)?
Future value of a $200 deposit in an account that earns 6.25% annual interest is $272.71 after 5 years. Determine the compounding period for this investment. My work: PV=FV(1+I/n)^ (n) 200=272.71(1+0.0625/n)^5n log0.73=log(1+0.0625/n)5n This is where I
 asked by Sam
 1,631 views

Math
Kenny will invest $16,000 in an account with an annual interest rate of 5% and the interest is compounded quarterly. How much money will be in the account in 7 years? How will I set this up?
 asked by Hannah
 1,233 views

Math
1. Determine the amount of money you will have if deposit $15,000 compounded quarterly for 5 years at 6% annual interest. help?
 asked by Lane
 1,128 views

Math
Serena wants to borrow $15 000 and pay it back in 10 years. Interest rates are high, so the bank makes her two offers: • Option 1: Borrow the money at 10%/a compounded quarterly for the full term. • Option 2: Borrow the money at 12%/a compounded
 asked by Maame
 2,657 views

math
Two investments earn a total annual income of $2825. One investment is in a 6.75% annual simple interest certificate of deposit. The other is in a 7.25% tax free annual simple interest account. The total amount invested is 40,000. Find the amount in
 asked by ethan
 538 views

math 090
You deposit $200 in an account earning 8% interest compounded annually. How much will you have in the account in 10 years?
 asked by aime
 2,438 views

FINANCE
You deposit $2,000 in an account that pays 8% interest compounded semiannually. After 4 years, the interest rate is increased to 8.28% compounded quarterly. What will be the value of the account after 4 more years? (Do not round until the final answer.
 asked by lily
 2,900 views

UOG
An initial investment of $12,000 is invested for 2 years in an account that earns 4% interest compounded quarterly. Find the amount of mnoey in the account at the end of the period.
 asked by Amy
 2,625 views

math 107
You deposit $4000 each year into an account earning 6% interest compounded annually. How much will you have in the account in 30 years?
 asked by shay
 4,674 views

math algebra
you deposit $800 in an account that earns simple interest at an annual rate of 5%. how long must you leave the money in the account to earn $100 in interest?
 asked by caden
 1,965 views

math
2. Suppose you obtain a $3,000 Tnote with a 3% annual rate, paid quarterly, with maturity in 5 years. How much interest will you earn?
 asked by Pat
 1,684 views

Math
A sum of $850 is invested for 10 years and the interest is compounded quarterly. There is $1100 in the account at the end of 10 years. What is the nominal annual rate?
 asked by Samantha E
 892 views

Business Finance
You deposit $300 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 25 years? $ b) How much total money will you put into the account? c) How much total interest will you earn?
 asked by C
 4,654 views

Algebra 2
Suppose you invest $500 at an annual interest rate of 8.2% compounded continuously. How much will you have in the account after 15 years?
 asked by Deavan
 9,462 views

Math
You deposit $2000 in an account earning 7% interest compounded monthly. How much will you have in the account in 10 years?
 asked by Name
 1,831 views
Still need help?
You can ask a new question or browse existing questions.