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REY [17]
3 years ago
13

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 t

o the nearest dollar.
Use the compound interest formula, the formula A = p (1 + r/n) ^nt
Mathematics
2 answers:
Alecsey [184]3 years ago
6 0
A=400×(1+0.03÷4)^(4×2)
A=424.64
Trava [24]3 years ago
4 0

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 .

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Answer:

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