Question

find the balance in the account

$500 principal earnings 4% compounded quarterly after six years.

a. $530.76

b. $634.87

c. $632.66

Answer 1

Ah there's the question that I was talking about!

Answer 2

If the interest is compounded quarterly, but not annually what does it mean? How many times does it get compounded every year?

Answer 3

4 times ??

Answer 4

Yep exactly! then you would have to multiply the value of t by 4

Answer 5

the value of time is six , right?

Answer 6

P = C (1 + r) ^ t use this equation again, but this time value of r and t will be altered since it is compounded quarterly

Answer 7

yes so value of t would be 6*4=24.
but the value of r will change too. Questions like this will always give you the interest value for an year. So if it says 4% compound interest, that means you will get 4% interest every year

Answer 8

In order to change it into a quarterly format, simply divide the interest value by 4

Answer 9

4%/4

Answer 10

yep