$6500 is invested in an account that pays 8 % compounded every 4 months. What is the amount, in the account after 10 years?

Question

$6500 is invested in an account that pays 8 % compounded every 4 months. What is the amount,  in the account after 10 years?

anonymous · Answer

Compound Interest P is the principal (the money you start with, your first deposit) r is the annual rate of interest as a decimal (5% means r = 0.05) n is the number of years you leave it on deposit A is how much money you've accumulated after n years, including interest. If the interest is compounded once a year: A = P(1 + r)n If the interest is compounded q times a year: A = P(1 + r/q)nq Use the second equation: Therefore A = 6500(1+0.08/3)^13 = $9158.58

anonymous · Answer

It's unclear whether that 8% is per year or per 4 months.  I'll assume it's per year.
$$A=P(1+r)^{t}$$where P is the principal, r is the rate (over the compounding period), and t is the number of compounding periods.
P=$6500
r = 8%/3
t = (10 years)(3 periods/year) = 30 periods
$$$6500(1+\frac{0.08}{3})^{30}$$