Carmen deposited $4000 into an account with 4% interest, compounded quarterly. Assuming that no withdrawals are made, how much will she have in the account after 4 years

Question

Carmen deposited $4000 into an account with 4% interest, compounded quarterly. Assuming that no withdrawals are made, how much will she have in the account after 4 years Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

The formula you want is: fv=p(1+int/c)^(nc)

future value

principal

int

compound

years

fv=4000(1.04/4)^(16)=$4690.31

Answer 2

16 compounding periods.

4/4 = 1% interest per quarter

So 4000 (1 + 0.01)¹⁶ = $ 4690.31

Answer 3

A = 4000(1 + 0.04/4)^4·4 = $4690.31