You deposit $5000 in an account earning 7% interest compounded quarterly

Question

You deposit $5000 in an account earning 7% interest compounded quarterly. How much will you have in the account in 5 years? Round your answer to the nearest cent.

Answer 1

A=5000(1+.07/4)^4(7)

=5000(1.0175)^28

use a calculator

=about $8127.06

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

where r= the interest rate, n=number of compounding periods per year, t = number of years