Question

Phillip opened a savings account with an annual interest rate of 8% and an initial deposit of $3500. If his interest is compounded quarterly, how much is in Jeffrey’s account after 2 years?

Answer 1

Anyone? my guess is 1411.97

Answer 2

Think.......read the problem again....It is a savings account, you are not suppose to lose money in a savings account. You can assume the answer will be more than what he put in.

Answer 3

Step 1. Look up the compound interest rate formula. Post it when you got it and then we can walk you thru it.

Answer 4

Here is a version that I use:

\[A=P(1 + r/n)^{nt}\]
Where A is the account balance.
P is the principal amount.
r is the interest rate in decimal
n is the number of compounds per years
t is the number of years.