Question

Find the balance in an account with $4,250 principal earning 3% interest compounded quarterly

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 4250\\ r=rate\to 3\%\to \frac{3}{100}\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &12 \end{cases}$

$\bf A=4250\left(1+\frac{0.03}{4}\right)^{4\cdot 12}\implies A=4250(1.0075)^{48}\implies \stackrel{\textit{rounded up}}{A=6083.47}$