Problema Solution
A principle of $6,000 is invested in an account paying an annual rate of 4%. Find the amount in the account after 3 years if the account is compounded semiannually, quarterly, and monthly.
Answer provided by our tutors
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
A = p(1+r/n)^nt = 6000(1+.04/2)^6= 6000(1.02)^6 = 7029.95