Question

$500.00 is deposited in an account that pays 3.5% compounded quarterly. what will the balance be after 12 years

Answer 1

The balance of the deposited account after 12 years is calculated as follows:

`a = p(1 + (r)/(n) )^(nt)\\ a = 500(1 + (0.035)/(4) )^(4(12)) \\ a = 500(1 + 0.00875 )^(48)`

`a = 500(1.00875 )^(48) \\ a = 759.59`