Question

Suppose you invest $200 at 4% interest compounded quarterly. How much money will there be after one year?

Answer 1

`A=P(1+ (r)/(n))^(nt)`
A=future amount
P=present amount
r=rate in decimal
n=number of time per year componded
t=time in years

`A=200(1+ (0.04)/(4n))^((4)(1))`

`A=200(1+ 0.01)^(4)`

`A=200(1.01)^(4)`
A=208.21

about $208.21