Kristin opens a savings account with $3500. She deposits $2400 every year into the account that has a 0.65% interest rate, compo
unded quarterly. If she doesn't withdraw any money, what will the account balance be in 10 years? 1. $28551.51
2. $24776.39
3. $28511.25
4. $24816.65
I don't know what formula to use or how to solve.
To find the account balance for this question you have to use the formula of a compound interest and the formula of the future value of an annuity ordinary.
The formula of a compound interest is A=p (1+r/k)^kt A future value? P present value 3500 R interest rate 0.0065 K compounded quarterly 4 T time 10 years
Also the formula of the future value of an annuity ordinary is Fv=pmt [(1+r/k)^(kt)-1)÷(r/k)] Fv future value? PMT since the payment per year is 2400 so you should find the payment per quarter which is 600 (2400÷4) because the interest is quarterly. R interest rate 0.0065 K compounded quarterly 4 T time 10 years
The sum of those two formulas is the answer. The balance is 3,500×(1+0.0065÷4)^(4×10) +600×(((1+0.0065÷4)^(4 ×10)−1)÷(0.0065÷4)) =28,511.25.....answer
A frequency table is a way to organize data. We create bins (intervals) to collect the data. Then, we give the frequency (number) of data values in each interval.
Here is an example of how you could sort this data.
