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Can you find the account balance on 3000 principal earning 6.4 interest compounded quarterly for 7 years?
Skatergirl2127
An annual rate of 6.4% compounded quarterly means 1.6% (6.4/4) every 3 months (12/4). A period of 7 years is equivalent to 28 (7 x 4) compounding periods. Let say that the account balance is N dollars, so
N = 3,000(1.016)^28 (100% + 1.6% = 1.016)
N = $4,678.914
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∙ 13y ago
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