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Home Q & A Board Science-Related Homework Help Mathematics
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scruffysmom scruffysmom
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9 years ago
A credit union client deposits $1240.00 in an account earning 10% annual interest, compounded quarterly.  What will the balance of the account be at the end of 12 years?  Use the formula A=P(l + r)n, where A is the account balance, P is the principal originally invested, r is the interest rate per compounding period as a decimal, and n is the total number of compounding periods.
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#1
Educator
9 years ago
Hey, thanks for the question. Here's a similar question that you can use as a model to answer your own question Slight Smile

Similar Question
A credit union client deposits $1690 in an account earning 9% annual interest, compounded quarterly. What will the balance of the account be at the end of 19 years?

Answer
for ci

a=p(1+r/n*100)^(nt)

=1690(1+9/400)^(4*19)

as quarterly means n=4

so a=$9168.51
wrote...
#2
Educator
9 years ago
Similar Question
A credit union client deposits $900 in an account earning 9.5% interest, compounded quarterly. What will the balance of the account be at the end of 19
years?

Answer
An annual interest rate paid quarterly means
that each quarter, 9.5% / 4 is applied each quarter.
This is 2.375%

Since we are compounding for 19 years we will have
19*4 = 76 compounding periods
So the amount in the account after 19 years is
(900)*(1.02375)^76 = 5357.72
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