Find the compound amount for the deposit. Round to the nearest cent:
-$ 200 at 7% compounded quarterly for 5 years

Question

Quizplus · Accepted Answer

The compound amount can be calculated using the formula A = P(1 + r/n)^(nt), where A is the amount, P is the principal amount ($200), r is the annual interest rate (7% or 0.07), n is the number of times the interest is compounded per year (quarterly, so 4 times), and t is the time the money is invested for (5 years). Plugging in the values, A = 200(1 + 0.07/4)^(4*5) = $282.96.

Find the Compound Amount for the Deposit