ok walk me through this please: Find the accumulated amount at the end of 10 years for a principal of $4500 Compounded quarterly at a yearly interest rate of 3%.

Question

anonymous · Answer

formula is 
$$4500(1+\frac{.03}{4})^{4\times 10}$$

anonymous · Answer

which formula is that exactly

anonymous · Answer

clear what i put where and why?

anonymous · Answer

ok slowly. 
principle is 4500
interest is 3%=.03
number of compounding periods per year is 4
number of years is 10

amistre64 · Answer

.03 is the annual rate; but its determined 4 times a year so it gets divided by 4.

anonymous · Answer

general formula is 
$$P(1+\frac{r}{n})^{ny}$$

anonymous · Answer

A=P(1+r)^n

amistre64 · Answer

since the time span is now 4 times ayear; that means that for every year that goes by we have a factor of 4; so ^4t`

anonymous · Answer

ok is that that formula R=Pi/1-(1+i)^-n

anonymous · Answer

where r is the interest rate (as a decimal) 
P is the principle
n is the number of compounding periods per year and 
Y is the number of years

anonymous · Answer

attachment

anonymous · Answer

this is compounded quarterly so you use n = 4

anonymous · Answer

i get 
$$4500(1+\frac{.03}{4})^{40}=6067.57$$ rounded

anonymous · Answer

ok ty

anonymous · Answer

welcome