Find the amount of money in an account after 6 years if $\$ 3900$ is deposited at $4 \%$ annual interest compounded quarterly.
A) $\$ 4946.14$
B) $\$ 4955.89$
C) $\$ 4951.97$
D) $\$ 4934.74$

Question

Quizplus · Accepted Answer

The formula for compound interest is $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. Plugging in the given values: $P = \$3900$, $r = 4\% = 0.04$, $n = 4$ (since the interest is compounded quarterly), and $t = 6$, we get $A = 3900(1 + \frac{0.04}{4})^{4*6}$, which calculates to approximately \$4951.97.

Find the Amount of Money in an Account After 6 $3900\$ 3900$3900

Find the Amount of Money in an Account After 6 $\$ 3900$