Question

Tim invested $25,000 to a company at an interest rate of 6.2% compound quarterly. write an equation

Answer 1

Answer:

$A=25,000(1+\frac{.062}{4})^{(4)t}$

Step-by-step explanation:

You are going to want to use the compound interest formula, which is shown below.

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

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Since the balance is compounded quarterly, the number $4$ will be used for n.

Now lets plug in the values into the equation:

$A=25,000(1+\frac{.062}{4})^{(4)t}$