if $750 are deposited into an account with a 9% interest rate, compounded quarterly, what is the balance…

if $750 are deposited into an account with a 9% interest rate, compounded quarterly, what is the balance after 12 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

if $750 are deposited into an account with a 9% interest rate, compounded quarterly, what is the balance after 12 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 750$, $r=0.09$, $n = 4$ (quarter - ly compounding), $t = 12$

Step2: Calculate the exponent

$nt=4\times12 = 48$

Step3: Calculate the interest rate per period

$\frac{r}{n}=\frac{0.09}{4}=0.0225$

Step4: Calculate the value inside the parentheses

$1+\frac{r}{n}=1 + 0.0225=1.0225$

Step5: Calculate the compound - amount

$F=P(1 + \frac{r}{n})^{nt}=750\times(1.0225)^{48}$ Using a calculator, $(1.0225)^{48}\approx2.932837$ $F = 750\times2.932837\approx2199.63$

Answer:

$2199.63$