Question

7. $6,000 is invested in an account that earns 4.5% annual interest, compounded quarterly. What is the

Answer 1

Answer:

The value of account after 8 years is $8580  

Step-by-step explanation:

Given in question as :

The principal that invested in an account = $6,000

The annual interest rate  compounded quarterly = 4.5%

Time period = 8 years

Now from compound Interest method for quarterly .

Amount = Principal $( 1 + \frac{Rate}{4 \times 100})^{4 \times Time}$

Or,Amount = $6,000 $( 1 + \frac{4.5}{4 \times 100})^{4 \times 8}$

Or, Amount = $6,000 (1.430)

∴ Amount = $8580  

Hence the value of account after 8 years is $8580   Answer