Question

Jim opened an account with $400. The account pays 3 percent quarterly. How much is in the account at the end of 2 years? Round to the nearest dollar.
Use the compound interest formula, the formula A = p (1 + r/n) ^nt

Answer 1

A=400×(1+0.03÷4)^(4×2)
A=424.64

Answer 2

Answer:

The money in the account at the end of 2 years is $424.64 .

Step-by-step explanation:

Formula

$A = p (1+\frac{r}{n})^{nt}$

Where A is the amount , r is the rate of interest in the decimal form , t is the time in years and n is compouding period .

As given

Jim opened an account with $400. The account pays 3 percent quarterly. How much is in the account at the end of 2 years .

p = $400

n = 4

t = 2 years

3% is written in the decimal form

$= \frac{3}{100}$

= 0.03

r = 0.03

Put all the values in the formula

$A = 400(1+\frac{0.03}{4})^{4\times 2}$

$A = 400(1+0.0075)^{8}$

$A = 400(1.0075)^{8}$

A = 400 × 1.0616

A = $424.64

Therefore the money in the account at the end of 2 years is $424.64 .