OpenStudy (anonymous):

A $6000 investment is made a at a local bank at an interest rate of 7% compounded quarterly. Find the total amount in the account after 4 years. Also, what is the amount of compound interest earned during the same 4 years?

6 years ago
OpenStudy (anonymous):

A = 6000(1 + .07/4)^(4*4)

6 years ago
OpenStudy (anonymous):

I came up with $72652.34 but that seems too high

6 years ago
OpenStudy (anonymous):

$7919.58

6 years ago
OpenStudy (anonymous):

\[6000(1+\frac{.07}{4})^{4\times4}\]

6 years ago
OpenStudy (anonymous):

7919.57

6 years ago
OpenStudy (anonymous):

what about the second half of the problem?

6 years ago
OpenStudy (anonymous):

let me know where you are getting 7% so i can go there

6 years ago
OpenStudy (anonymous):

LOL... no kidding... only in my textbook...

6 years ago
OpenStudy (anonymous):

as far as i can tell the second part is just asking for the interest. so interest is \[7919.57-6000\]

6 years ago
OpenStudy (anonymous):

I red it as changing from quarterly to annual... am I reading it wrong?

6 years ago