You invest an initial $1,000 in an account that has an annual interest rate of 2%, compounded quarterly. How much money will you have in the account after 5 years? Round your answer to the nearest whole number.Answer

$1,023

$1,094

$1,105

$1,245

Question

You invest an initial $1,000 in an account that has an annual interest rate of 2%, compounded quarterly. How much money will you have in the account after 5 years? Round your answer to the nearest whole number.Answer
		
$1,023
		
$1,094
		
$1,105
		
$1,245

anonymous · Answer

@cherio12

anonymous · Answer

this is an interest formula one...i dont remember it completely but its along the lines of:
$$final money=1000(1+.02)^n$$
i'm alittle fuzzy in this area sorry

anonymous · Answer

@matricked

anonymous · Answer

first of all calculate here qurterly rate of interest as 2/4=0.5% (as interest is paid quarterly)
and now the no. of periods is 5*4=20
so the amount=1000(1+0.005)^20=1105   (approximately)