Use the formula A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n }$$ to find the amount requested.
-A principal of $1,000 is invisted in an account paying on annual interest rate of 5%. Find the amount in the account after 9 years if hte account is compounded quarterly.
A) $1551.33
B) $559.66
C) $1559.66
D) $1521.62

Question

Quizplus · Accepted Answer

Using the formula $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 1000$, $r = 0.05$, $n = 4$ (since the interest is compounded quarterly), and $t = 9$ years, we calculate the amount in the account after 9 years. Plugging in the values, we get $A = 1000 \left(1 + \frac{0.05}{4}\right)^{4*9}$, which simplifies to $A = 1000 \left(1 + 0.0125\right)^{36}$, and further calculation gives us $A ≈ 1559.66$.

Use the Formula A A=P(1+rn)nA = P \left( 1 + \frac { r } { n } \right) ^ { n }A=P(1+nr​)n

Use the Formula A $A = P \left( 1 + \frac { r } { n } \right) ^ { n }$