Problema Solution

Use the compound interest formula to compute the total amount after $3500 is invested at 4% over 9 years compounded quartley. Then compute interest.

Answer provided by our tutors

The compound interest formula is: A=P(1+r/n)^nt

For this problem,

P=3500

r=0.04

n=4

t=9

A=3500(1+0.04/4)^(4*9)

 = $5007.69