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lbvjy [14]
3 years ago
10

At the time of her​ grandson's birth, a grandmother deposited ​$6, 000 in an account. The account was paying 4.5​% interest comp

ounded monthly.
a. If the rate did not​ change, what was the value of the account after 17 ​years?
b. If the money had been invested at 4.5​% compounded​ quarterly, what would the value of the account have been after 17 ​years?
a. The value of the account will be ​$
b.The value after 17 years $
Mathematics
1 answer:
olga2289 [7]3 years ago
4 0
Put the given numbers in the appropriate formula and evaluate.
  A = P(1 +r/n)^(nt)
P is the principal amount
r is the annual rate
n is the number of times per year interest is compounded
t is the number of years
A is the balance in the account after t years

a. A = $6000*(1 + .045/12)^(12*17) ≈ $12,875.53

b. A = $6000*(1 + .045/4)^(4*17) = $12,839.01
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