Question

Suppose that $2000 is invested at a rate of 2.6 %, compounded quarterly Assuming that no withdrawals are made the amount after 8 years

Answer 1

A = p(1+r/n)nt

A = final amount

p = principal = 2000

r = interest rate = .04

n = # times compounded pet year = 2

t = time in years = 7

A = 2000(1+.04/2)2(7)

A = 2000(1.02)14

A= 2638.957

HOPE IT HELPS.....