Saxon wants to take a trip to Ireland. She plans to deposit $510 at the beginning of each quarter into an investment with a 2.95% interest rate, compounded quarterly. How much will she have in the account after 8 years?

Question

anonymous · Answer

What formula should I use here.

parthkohli · Answer

To get the amount, formula is:

$\Large \color{Black}{\Rightarrow Principal(1 + {rate \over 100})^n }$

n is the time (mostly in years).

parthkohli · Answer

Can you do it or should I guide you further?

anonymous · Answer

Hold on I am solving. I wanna see if I can solv it on my own first

parthkohli · Answer

Ok :)

parthkohli · Answer

Also, notice that it is quarterly compounding, and 8 years = 32 quarters.

anonymous · Answer

572.90 that is what I got

parthkohli · Answer

$\Large \color{Black}{\Rightarrow 510(1 + {2.95 \over 100})^{32} }$

Did you use this formula?

anonymous · Answer

1293.04

parthkohli · Answer

Yes!