Question

kiera opened a savings account and deposited $700.00 as principal the account earns 3%interest compounded quarterly what is the balance after 9 years

Answer 1

Data:

Initial capital: C

Rate of interest: r

Time: t

Final Capital:F

Number of periods:n

C=700.00

r=3%=0.03

t=9years

n=4

F=?

Find the number of quarters in 9 years:

$9\text{years}\cdot\frac{4quarters}{1\text{year}}=36\text{quarters}$

Use the next formula to find the balance or final capital after 9 years:

$F=C(1+\frac{r}{n})^{nt}$$\begin{gathered} F=700.00(1+\frac{0.03}{4})^{4(36)} \\ F=700.00(1.0075)^{144} \\ F=700.00(2.932) \\ F=2052.4 \end{gathered}$Then, the balance after 9 years id $2052.4