Question

brody opened a savings account and deposited 1,000.00 as principal the account earns 15% interest compounded quarterly what is the balance after 7 years

Answer 1

The final amount is,

$\begin{gathered} A=P(1+\frac{R}{n\times100})^{7n} \\ \text{Here, P is principal, R is rate, T is time in years, n is number of times interest is compounded} \end{gathered}$

Here, P=1000, R=15%, T=7, n=4. Substitute values in equation.

$\begin{gathered} A=1000(1+\frac{15}{4\times100})^{7\times4} \\ \text{ =1000(1+}\frac{15}{400})^{28} \\ \text{ =}2803.28 \end{gathered}$

Balance after 7 years is 2803.28.