Question

you deposit $7,900 in a money-market account that pays an annual interest rate of 4.3%. the interest is compounded quarterly. how much money will you have after 3 years?

Answer 1

anonymous  3 years agowe are solving for A, A is the future amount A=? P is the present value, so we were told 7,900, so p=7900 r is the interest rate, so 4.3%, but in decimal form so r=0.043 k is the how often it is 'compounded', it says quarterly, so k=4 n is how long, 3 years, so n=3 A=P(1+rk)n∗k plug in the values
A=8981.51