Lawson opened a savings account 24 years ago with a deposit of $4,169.06. The account has an interest rate of 4.3% compounded quarterly. How much interest has Lawson earned?
Answer
$11,636.92
$7,467.86
$11,451.48
$4,348.33

Question

Lawson opened a savings account 24 years ago with a deposit of $4,169.06. The account has an interest rate of 4.3% compounded quarterly. How much interest has Lawson earned?
Answer
		$11,636.92
		$7,467.86
		$11,451.48
		$4,348.33

mathteacher1729 · Answer

This is a very very useful page for computing such numbers. http://www.wfu.edu/~palmitar/Law&Valuation/chapter%201/1-2-2.htm Also -- these computations are SUPER important! Understanding your bank's different savings accounts are very important for managing your money.

tkhunny · Answer

Only one payment.  This should not be tripping you up.  They only get harder from here.  Find a way to be systematic with Basic Principles

Annual Interest: 0.043
Quarterly Interest: 0.043/4 = 0.01075
Quarterly Accumulation Factor: 1.01075
Yearly Accumulation Factor: 1.01075^4 = 1.04369835754219140625 Round howver you think it appropriate.
24 Year Accumulation Factor: 1.043698^24 = 2.791235

One more thing to do.  I haven't used the initial deposit, yet.

anonymous · Answer

$7,467.86?