Question

Hilda has deposited $874 in a savings account that earns interest at a rate of 3.2% compounded quarterly. What will the account balance be in seven years?

Answer 1

$901.97

$1,092.46

$2,111.27

$2,796.80

Answer 2

multiple choice

Answer 3

\[\large A = P(1 + \frac{ r }{ n })^{nt}\]

A = amount (what you want...)
P = principal / original rate
r = rate (.032 here)
n = the number of times the interests gets compounded...."quarterly" means 4 times a year...so 4
and
t = time in years...

so we have

\[\large A = 874(1 + \frac{ .032 }{ 4 })^{4 \times 7}\]

Can you solve this?

Answer 4

Yes i believe i can hold up a second please

Answer 5

No problem...

Answer 6

is it 24,667.776

Answer 7

no i did it wrong right?

Answer 8

Yeah..show me what you did...

Answer 9

is it b

Answer 10

i just re calculated

Answer 11

Yes it is...good work!

Answer 12

thank you so much

Answer 13

Anytime!

Answer 14

bye now (: