Answered

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If $1,800 is deposited into an account earning 6%, how much will will be in the account at end of 18 years if the interest is compounded quarterly?

Sagot :

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Answer:

$4,738.82

Step-by-step explanation:

Using the compound interest formula expressed as;

A = P(1+r/n)^nt

P is the principal = $1800

r is the rate = 6% = 0.06

t is the total time = 18years

n is the time of compounding = 1/4 years

Substitute

A = 1800(1+0.06(4))^(18/4)

A = 1800(1+0.24)^4.5

A = 1800()1.24)^4.5

A = 1800(2.6327)

A = 4,738.82

Hence the amount in the account after 18years is $4,738.82

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