Question

Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years

A. $40,000.00

B. $41,600.00

C. $2,924.65

D. $2,931.45

Answer 1

Hello there,

A(4) = 2500(1.01)^16
----
A(4) = 2500*1.1726
----
A(4) = $2931.45

Hope this helps!

Answer 2

Answer:

The balance in the account is $2931.45 .

Option (D) is correct.

Step-by-step explanation:

Formula

$Amount = P(1 +\frac{r}{4})^{4t}$

Where P is the principle , r s the rate of interest in the decimal form and t is the time in years .

As given

The account. $2,500 principal earning 4%, compounded quarterly, after 4 years.

P = $2500

4% is written in the decimal form

$= \frac{4}{100}$

= 0.04

r = 0.04

t = 4 yeas

Put all the values in the formula

$Amount = 2500(1 +\frac{0.04}{4})^{4\times 4}$

$Amount = 2500(1 +\frac{0.04}{4})^{16}$

$Amount = 2500(1 +0.01)^{16}$

$Amount = 2500(1.01)^{16}$

$Amount = 2500\times 1.17258$

Amount = $2931.45

Therefore the balance in the account is $2931.45 .

Option (D) is correct.