A bank features a savings account that has an annual percentage rate of r=5.2% with interest compounded quarterly. Marcus deposits $8,500 into the account.

Question

The account balance can be modeled by the exponential formula S(t)=P(1+rn)^nt, where S is the future value, P is the present value, r is the annual percentage rate written as a decimal, n is the number of times each year that the interest is compounded, and t is the time in years.

(A) What values should be used for P, r, and n?

P= ___ , r=____ , n=_____

(B) How much money will Marcus have in the account in 7 years?

Answer = $_____ .

Round answer to the nearest penny.

Answer 1

S(t) = P(1 + r/n)^nt P = $8500, r = .052, n = 4, t = 7

S(7) = 8500(1 + .052/7)⁴⁽⁷⁾

S(7) = 8500( 1 + .00743)²⁸

S(7) = 8500(1.00743)²⁸

You can probably continue from there.