Phillip deposited $5,670 into a savings account 19 years ago. The account has an interest rate of 4.1% and the balance is currently $12,356.04. How often does the interest compound?
daily

monthly

quarterly

annually

Question

Phillip deposited $5,670 into a savings account 19 years ago. The account has an interest rate of 4.1% and the balance is currently $12,356.04. How often does the interest compound?
daily

 monthly

 quarterly

 annually

anonymous · Answer

quartley probolly

triciaal · Answer

Accumulated = Principal(1 + rate)^time
12356.04/5670 = (1.041)^t = 2.179
t log 1.041 = log 2.179
t = .338/0.017 = 19.8
in 19 years the interest is compounded 19 times  therefore once per year = annually