Question

Jimmy invests $3000 in an account with a 3.8% interest rate, making no other deposits or withdrawals. What will Jimmy’s account balance be after 9 years if the interest is compounded quarterly? Round to the nearest cent.

Answer 1

Use the formula A(t)=P(1+[r/n])^(n)(t) which for us looks like this:
A(t)= 3000(1+[.038/4])^(4)(9). Doing that math, you have 3000(1.405489). The product of that is $4216.47