Question

Chase Opened a savings account and deposited 800.00 as principal the account earns 11% interest compounded quarterly what is the balance after 7 years

Answer 1

Solution

For this case we can use the following formula:

$A=P(1+\frac{r}{n})^{nt}$

And we have t= 7 years, n= 4 (quarterly) P = 800 and r= 0.11

and replacing we got:

$A=800(1+\frac{0.11}{4})^{4\cdot11}=2639.31$

Then the balance would be 2639.31$