Question

$500 is deposited into an account quarterly for eight years at an interest rate of 5.3% compounded quarterly. How much is in the account at the end of the 8 years?

Answer 1

A = P(1+r/n)^(nt)


A = 500(1+0.053/4)^(4*8)


A = 500(1+0.053/4)^(32)


A = 500(1+0.01325)^(32)


A = 500(1.01325)^(32)


A = 500(1.5238127)


A = 761.90635



So 761.91 dollars will be in the account.