You deposited $2000 into a college savings account 5 years ago. if the account pays 2.5% annual interest, compounded quarterly, how do you find the current balance of the savings account? please show work thank you ! (=?
1 Answer
Oct 13, 2015
Explanation:
This can be solved using compound interest formula
p = principle interest
r = annual interest
n = number of times interest is compounded per year
t = number of years the amount is deposited or borrowed for
A = Amount after n years including balance
Here,
p = 2000
r = 2.5 / 100 = 0.025
n = 4
t = 5
so,