clarycollins4899 clarycollins4899
  • 26-02-2019
  • Business
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Galvin has deposited $879 in a savings account that earns interest at a rate of 1.8% compounded quarterly.what will the account balance be in 14 years?

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MsTeel
MsTeel MsTeel
  • 27-02-2019

$1,130.28

Formula is A = P (1 + [r/n])^(nt)

A= 879 (1+ [.018/4])^(4*14)

A= 879 (1.0045)^56

A= $1,130.28

A = future total amount

P = principle (amount initially deposited)

r = the annual interest rate (decimal)

n = times that interest is compounded per year  (quarterly is 4 times per year)

t = number of years

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