You invest an initial $100 in an account that has an annual interest rate of 3%, compounded quarterly. How much money will you have in the account after 20 years? Round your answer to the nearest whole number

Question

misty1212 · Answer

HI!! again

anonymous · Answer

haha hi. thank you. ur the most help

misty1212 · Answer

$$100\left(1.03\right)^{20}$$should work

anonymous · Answer

Thank you so mch!

mathstudent55 · Answer

Start by writing the formula for compound interest.
Then write in your values.
Then calculate.

misty1212 · Answer

wrong i was wrong wrong wroing

misty1212 · Answer

Quarterly !!

anonymous · Answer

???

misty1212 · Answer

$$100\times (1+\frac{.03}{4})^{80}$$ is what you need

anonymous · Answer

oh ahha thank you

misty1212 · Answer

http://www.wolframalpha.com/input/?i=100%281%2B.04%29%5E%2880%29

misty1212 · Answer

formula 
$$P(1+\frac{r}{n})^{nt}$$ is what i am using

misty1212 · Answer

P is the principle, r is the rate (as a decimal not as a percent) n is the number of compounding periods and t is time in years

rational · Answer

looks like you would have lost more than $1 with that wrong formula http://www.wolframalpha.com/input/?i=100%281%2B.03%2F4%29^%2880%29+-+100%281%2B.03%29^%2820%29

mathstudent55 · Answer

$F = P \left(1 + \dfrac{r}{n} \right) ^{nt} $

where

F = future value
P = present value
r  = annual interest rate of interest (written as a decimal)
n  =  number of times the interest is compounded per year 
t  = number of years

mathstudent55 · Answer

$F = 100 \left(1 + \dfrac{0.03}{4} \right) ^{4 \times 20}$

mathstudent55 · Answer

$F = 100 (1.075) ^{80}$

$F = 100(1.81804...)$

$F = 181.80$