Question

Suppose $1750 is put into an account that pays an annual rate of 4.5%

Answer 1

Answer:

The amount in the account after six years is $2,288.98

Step-by-step explanation:

In this question, we are asked to calculate the amount that will be in an account that has a principal that is compounded quarterly.

To calculate this amount, we use the formula below

A = P(1+r/n)^nt

Where P is the amount deposited which is $1,750

r is the rate which is 4.5% = 4.5/100 = 0.045

t is the number of years which is 6 years

n is the number of times per year, the interest is compounded which is 4(quarterly means every 3 months)

we plug these values into the equation

A = 1750( 1 + 0.045/4)^(4 * 6)

A = 1750( 1 + 0.01125)^24

A = 1750( 1.01125)^24

A = 2,288.98

The amount in the account after 6 years is $2,288.98