Question

Felipe deposited 4000 into an account with 2.2% interest, compounded quarterly. Assuming that no withdrawals are made, how much will he have in the account after 3years? Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

Answer:

Final Value= $4,272.13

Explanation:

Giving the following information:

Felipe deposited 4000 into an account with 2.2% interest, compounded quarterly.

First, we need to calculate the quarterly interest rate:

Interest rate= 0.022/4= 0.0055

Now, we can calculate the final value:

FV= PV*(1+i)^n

FV= 4,000*(1.0055^12)= $4,272.13