Question

Find the amount in an account if 7,650 is invested at 9.15 percent compounded quarterly for 8 years and 6 months

Answer 1

We have been given that in an account an amount of 7,650 is invested at 9.15 percent compounded quarterly for 8 years and 6 months.

We will use compound interest formula to find our answer.

`A=Pcdot(1+(r)/(n)) ^(nT)`,

Where, P= principle amount, A= amount after T years, n= period of compounding and r = interest rate (decimal).

Let us substitute our given values in our formula.

`A=7650(1+(0.0915)/(4) )^((8.5*4))`

`A=7650(1+0.022875)^(34)`

`A=7650(1.022875)^(34)`

`A=7650\cdot 2.15758136398`

`A=16505.4974`

Therefore, after 8 years and 6 months our amount will be 16505.497.