Question

Paul deposited $6,460 into a savings account 17 years ago. The account has an interest rate of 4.3% and the balance is currently $13,400.91. How often does the interest compound? daily? monthly?quarterly? or annually?

Answer 1

ask mr.brown!

Answer 2

annually

Answer 3

Your book or teacher probably gave you the formula they want you to use for interest. A good way to tackle this would be, set up the equation using the information you've been given, that is, P,the principal (starting) ammount, and the current amount A, and the interest rate, r=.043. The only variable left is t, time, solving for t is all that you'll need to do.