Question

Solve the problem. Find the amount of money in an account after 12 years if $4700 is deposited at 5% annual interest compounded quarterly. $8501.01 $8440.52 $8553.29 $8532.17

Answer 1

Answer:

The correct answer is $8532.17

Step-by-step explanation:

The formula for calculating investments with compound interests is as follows:

$(1+\frac{R}{t})^{tn}*P$

Where:

R is the annual interest rate,

t is the number of times the investment is to be compounded in a year,

n is the number of years,

P is the principal amount invested.

Replacing in the formula with the given values you have:

$(1+\frac{0.05}{4})^{4*12}*4700 = 8532.1678$