Question

What would the total account value be if i deposited 14,000 into a bank account earning 3.25% compounded quarterly for 4 years?

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 14000\\ r=rate\to 3.25\%\to \frac{3.25}{100}\to &0.0325\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\to &4\\ t=years\to &4 \end{cases} \\\\\\ A=14000\left(1+\frac{0.0325}{4}\right)^{4\cdot 4}\implies A=14000(1.008125)^{16}$