The principal represents an amount of money deposited in a savings account subje
ID: 3169678 • Letter: T
Question
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal
Rate
Compounded
Time
$ 8500
6 %
quarterly
4 years
A. Find how much money there will be in the account after the given number of years.
B. Find the interest earned.
A. The amount of money in the account after 4 years is $_.
(Round to the nearest hundredth as needed.)
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal
Rate
Compounded
Time
$ 8500
6 %
quarterly
4 years
Explanation / Answer
applying compounded quarterly formula
A = P ( 1 + r/n )^nt
A = 8500 ( 1 + .06 /4 )^4*4
A = 10786.38
amount of money earned in 4 years is $ 10786.38
b) interest earned = 10786.38 - 8500 = $ 2286.38
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