$4000 is compounded quarterly at a rate of 11% for 3 years. Find the total amount in the compound interest account.

Question

another math problem I can not figure out

Answer 1

The equation for compounded interest is A=P(1+(r/n))^nt.

A=future value
P=initial investment
r= interest rate (as a decimal)
n=number of times compounded
t=time in years

So, in this problem:

A=4000(1+(0.11/4))^4*3
A=4000(1+0.0275)¹²

A=4000(1.0275)¹²
A=4000*1.384784

A=5539.14

*Note that the term 'quarterly' represents the compounding of the interest four times per year so n=4