Pedro deposited $7,350 into a savings account 21 years ago. The account has an interest rate of 4.5% and the balance is currently $18,810.67. How often does the interest compound?

Question

tamtoan · Answer

what is the compound interest formula ?

anonymous · Answer

I have no clue, I've never done this before. lol

tamtoan · Answer

check this :) ...all in the formula except time...you can then figure out time http://qrc.depaul.edu/StudyGuide2009/Notes/Savings%20Accounts/Compound%20Interest.htm

anonymous · Answer

I think all it's asking is if it is daily, monthly, annually, or quarterly.

tamtoan · Answer

sorry , except n, not time t ...so you need to figure n out from that formula :) t is already given

anonymous · Answer

ok, Thank you

tamtoan · Answer

np, enjoy the day :)

anonymous · Answer

$18,810.67 /  $7,350 = 2.5593
Do trial and check:
( 1 + .045/ 4) ^ 84      = ....