Find the amount of money in an account after 11 years if $\$ 1100$ is deposited at $8 \%$ annual interest compounded quarterly. Assume no money is withdrawn.
A) $\$ 2644.26$
B) $\$ 2606.91$
C) $\$ 2629.06$
D) $\$ 2564.80$

Question

Quizplus · Accepted Answer

The formula for compound interest is $ A = P \left(1 + \frac{r}{n}\right)^{nt} $. Here, $ P = 1100 $, $ r = 0.08 $, $ n = 4 $, and $ t = 11 $. Plugging in these values gives $ A = 1100 \left(1 + \frac{0.08}{4}\right)^{4 \times 11} \approx 2629.06 $.

Find the Amount of Money in an Account After 11 $1100\$ 1100$1100

Find the Amount of Money in an Account After 11 $\$ 1100$