Question

How much money will there be in an account at the end of 7 years if $4000 is deposited at 6% interest
compounded quarterly? (Assume no withdrawals are made.)

Answer 1

Answer:

$10,720.00

Step-by-step explanation:

Answer 2

9514 1404 393

Answer:

  $6068.89

Step-by-step explanation:

The compound interest formula tells you the amount will be ...

  FV = P(1 +r/n)^(nt)

for principal P at annual rate r compounded n times per year for t years.

  FV = $4000(1 +.06/4)^(4·7) = $4000(1.015^28) ≈ $6068.89

There will be $6068.89 in the account at the end of 7 years.