can you please help solve

Question

A principal of $7000 is invested in an account paying an annual rate of 5.5%. Find the amount in the account after 3 years if the account is compounded semiannually, quarterly, and monthly

Answer 1

Use the compound interest formula:

 

A = P(1 + (r/n))^nt

 

where:

A = amount accumulated

P = amount investment

r = interest rate (decimal form)

t = time (in years)

n = number of times compounded per year

 

Plug in the known values to solve for A for each case:

 

For semiannually ,       use     n=2

For quarterly,              use     n=4

For monthly,               use     n=52