Answer:
Final amount after 4 years will be $5518.
Step-by-step explanation:
From the given question Principal amount in the account of Stan = $4706
and we have to calculate amount after 4 years with 4% interest compounded quarterly.
Formula will be final amount [tex]A=A'(1+\frac{r}{n})^{nt}[/tex]
Here A' = $4706
t = 4 years
n = number of times compounded = quarterly that will be 4
r = .04
[tex]A=4706(1+\frac{.04}{4})^{4\times 4}=4706(1+.01)^{16}[/tex]
[tex]A=4706(1.01)^{16}=4706\times 1.17=$5518[/tex]
So the final amount after four years will be $5518.
Answer:
The amount = $5518
Step-by-step explanation:
Formula: compound interest
A = P[1 + r/4]^4N
A - amount
P - Principle amount
r - rate of interest
N - Number of years
It is given that, Stan savings account has a balance of $4706.
To find amount of interest
Here P = $4706
r = 4%
N = 4 years
A = P[1 + r/4]^4N
A = 4706[1 + .04/4]^4*4
A = 4706*1.17 = 5518
Therefore the amount = $5518
