Question

Question 3, 3.4.
O Points: 0 of 1
How much money will be in an account at the end of 9 years if $5,000 is deposited at 4% interest compounded 4 times per year? Assume no deposits or withdrawals are
There will be about $() in the account at the end of 9 years.
(Round to the nearest dollar as needed.)
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Answer 1

9514 1404 393

Answer:

  $7154

Step-by-step explanation:

The formula for the account balance is ...

  A = P(1 +r/n)^(nt)

where principal P is invested at annual rate r compounded n times per year for t years. You have P=5000, r=0.04, n=4, t=9. Filling these values into the formula, you can do the arithmetic to find the balance.

  A = $5000(1 +0.04/4)^(4·9) = $5000(1.01^36) ≈ $7153.84

There will be about $7154 in the account at the end of 9 years.