contestada

Frank opened a savings account with $700 at 4.5 percent interest, compounded quarterly, and kept it in the account for two years. How much was the final amount? Round to the nearest dollar.

Respuesta :

Samawati

Answer:

$ 766

Explanation:

4.5 percent yearly interest rate compounded every quarter

the rate per quarter = 4.5 %/4

After two years, the principal amount will be compounded eight times.

calculation of future value FV is the formula

FV= PV x (1+r) n

here Present value = $700

Interest rate = 4.5%/4

Time is 8 period

FV = $700 x (1+4.5/100/4)8

FV=$700 X (1+0.01125)8

Fv =$700 x 1.094

Fv =765.8

Fv=766

Otras preguntas