Answer:
Step-by-step explanation:
To calculate the balance after 4 years with a 13.37% interest rate compounded quarterly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = final amount (balance)
P = principal (initial deposit)
r = interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
Given:
P = $6,195.00
r = 13.37% = 0.1337 (as a decimal)
n = 4 (quarterly compounding)
t = 4 years
Substituting the values into the formula:
A = $6,195.00(1 + 0.1337/4)^(4*4)
Calculating the exponent first:
A = $6,195.00(1.033425)^(16)
Now, we can raise the base to the power of the exponent:
A = $6,195.00(1.649626601)^16
Evaluating the exponent:
A ≈ $6,195.00(5.344864)
Calculating the final balance:
A ≈ $33,070.47
Therefore, the balance in Troy's savings account after 4 years would be approximately $33,070.47.
