Question

You invest $600 in an account that has a annual interest rate of 7%, compounded quarterly for four years. What is the equivalent interest rate, and how many times will the money be compounded?

Answer 1

a fursuit

Answer 2

ok have you started working on this or do you need the formula and explanation again?

Answer 3

ya

Answer 4

ok so the formula for this, since it is compounded quarterly is: \[A=P_o(1+\frac{ r }{ n })^nt\]
Po= 600 (starting amount)
r= rate as a decimal (7% to a decimal)
n= number of times compounded per year (quarterly=4)
t= time in years (in this case, 4 years)

so now we plug into the equation:
\[A=600(1+\frac{ .07 }{ 4 })^4(4)\]

the formatting is weird so im gonna do the ending part for you. since we raise it to N(t) and in this case, that's 4(4), we raise it to 16

\[A=600(1+\frac{ .07 }{ 4 })^16\]

can you put tht in the calculator how i have it?

Answer 5

Also for the second part of the question, the "and how many times will the money be compounded?" we already answered that above. If the money gets compounded quarterly and we already said quarterly=4, there is your answer to that part.

Answer 6

a=791.957611

Answer 7

mhm, so idk if you have to round your answer but if you round it two decimal places, it's 791.96 and if you round it to the nearest whole number we round up to 792. Hopefully you understand how to do it now (: Pls close when done < 3

Answer 8

the only options are