
Jason T. answered 09/05/13
Tutor
4.9
(173)
Master's degree in math education
Remember that the formula for interest problems is: A = P(1+(i/n))nt
where A = amount
P = principal (the dollars you start with)
i = annual interest rate
n = number of times compounded per year
t = number of years
In this problem P = 700, i = 0.085, n = 4 (quarterly), and t = 10
So, the equation becomes A = 700(1 + (0.085/4))4*10