Question

$1200.00 is deposited into an account that earns 6.5% interest, which is compounded four times per year. How much money will be in the account after 6 years?

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 1200\\ r=rate\to 6.5\%\to \frac{6.5}{100}\to &0.065\\ n= \begin{array}{llll} \textit{times it compounds per year} \end{array}\to &4\\ t=years\to &6 \end{cases} \\\\\\ A=1200\left(1+\frac{0.065}{4}\right)^{4\cdot 6}\implies A=1200(1.01625)^{24}$