Question

Find the amount in an account if 7,650 is invested at 9.15 percent compounded quarterly for 8 years and 6 months

Answer 1

We have been given that in an account an amount of 7,650 is invested at 9.15 percent compounded quarterly for 8 years and 6 months.

We will use compound interest formula to find our answer.

$A=Pcdot(1+\frac{r}{n}) ^{nT}$,

Where, P= principle amount, A= amount after T years, n= period of compounding and r = interest rate (decimal).

Let us substitute our given values in our formula.

$A=7650(1+\frac{0.0915}{4} )^{(8.5\times4)}$  

$A=7650(1+0.022875)^{34}$

$A=7650(1.022875)^{34}$  

$A=7650\cdot 2.15758136398$

$A=16505.4974$    

Therefore, after 8 years and 6 months our amount will be 16505.497.