how would you do this question? Suppose $2,500 is invested at 4% compounded quarterly. how much money will be in the account in 3/4 years?

Question

valpey · Answer

4% quarterly is 1% each quarter. At the end of each quarter there will be 101% of what was there at the beginning of the quarter. so $2,500*(1.01)^3

anonymous · Answer

shouldn't it be raise to 3/4 instead of 3?

amistre64 · Answer

the formula for this is:$$A=P(1+\frac{r}{n})^{nt}$$

anonymous · Answer

how would i plug in the number? for it?

amistre64 · Answer

where r is the rate, n is the number of times a year it is compunded, and t is the time in years it states

amistre64 · Answer

it works out to the same setup :)

anonymous · Answer

$$2500=P(1.01)^{.1875}$$

amistre64 · Answer

your "Principal" , the P part, is 2500

4*3/4 (nt part) is not .1375

amistre64 · Answer

4 times a year, times 3/4 of a year

anonymous · Answer

ookay thanks a lot... i got it now...