Question

Find the amount in the account for the given principal interest rate, time, and compounding period . P=\$600 , r=6\% , t = 9 years ; compounded quarterly

Answer 1

Answer:

The amount in the account for the given principal P=$600, interest rate, r=6% , time t = 9 years ; compounded quarterly n = 4 is $1026

Step-by-step explanation:

We are given:

Principal Amount P=$600

Interest rate r = 6% = 0.06

Time t = 9 years

Compounded quarterly n = 4

We need to find future value A.

The formula used is: $A=P(1+\frac{r}{n})^{nt}$

Putting values and finding future value

$A=P(1+\frac{r}{n})^{nt}\\A=600(1+\frac{0.06}{4})^{9*4}\\A=600(1+0.015)^{36}\\A=600(1.015)^{36}\\A=600(1.71)\\A=1026$

So, the future value A = $1026

The amount in the account for the given principal P=$600, interest rate, r=6% , time t = 9 years ; compounded quarterly n = 4 is $1026