Question

8) a) How much money will there be in an account at the end of 6 year if $2000 is deposited at compounded quarterly? Write the formula and show all work.​

Answer 1

Answer:

$2539.47

10.18722679 (make sure you round this)

Step-by-step explanation:

a.)

Equation for compound interest:

$AV=P(1+\frac{i}{n})^{n*t}\\2000(1+\frac{.04}{4})^{4*6}\\2000(1.01)^{24}\\2539.469297$

which rounds to

2539.47

b.)

using the same equation we can write

$3000=2000(1+\frac{.04}{4})^{4t}\\1.5=1.01^{4t}\\log_{1.01}1.5=4t\\log_{1.01}1.5=\frac{log(1.5)}{log(1.01)}=40.7489\\40.7489=4t\\10.18722679=t$

not sure how to round this, so I'll leave that part up to you