Problema Solution

A deposit of $2500 is made into a savings account at a compound interest rate of 5.5% quaterly. Write an equation showing how much would be in the account after x number of years. How much will be in the account in 4 years?

Answer provided by our tutors

A = 2500(1 + .055/4)4*4

A = 2500(1.01375)16

A = 3110.526346

 

$3110.53