Question

Find the balance in the account. $2,500 principal earning 4%, compounded quarterly, after 4 years

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 2500\\ r=rate\to 4\%\to \frac{4}{100}\dotfill &0.04\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &4 \end{cases} \\\\\\ A=2500\left(1+\frac{0.04}{4}\right)^{4\cdot 4}\implies A=2500(1.01)^{16}\implies A\approx 2931.4466123$