text: Thursday
  May 5, 2016
  
  Homework Help: math
  
  Posted by katie on Friday, September 2, 2011 at 4:48pm.
  
  You deposit \$2200 in an account that pays 3% annual interest. After 15 years, you withdraw the money, what is the balance if the interest is compounded quarterly?
  
  so I figure you would get 2650.00 help please
  • math - MathMate, Friday, September 2, 2011 at 6:26pm
  
  What you probably did was calculated simple interest for 15 years on \$1000 and added to \$2200 to give \$2650.
  
  Compound interest formula are based on the number of periods, n, the interest was compounded.
  
  The interest being compounded 4 times a year, so there are 15*4=60 periods of 3 months each. The corresponding interest rate for each period is therefore r = 3%/4=0.0075.
  
  The formula for the future value using compound interest is:
  FV = Principal * (1+r)^n
  =2200*1.0075^60
  =2200*1.565681
  =\$3444.50
metadata: {"found_math": false, "script_math_tex": 0, "script_math_asciimath": 0, "math_annotations": 0, "math_alttext": 0, "mathml": 0, "mathjax_tag": 0, "mathjax_inline_tex": 0, "mathjax_display_tex": 0, "mathjax_asciimath": 0, "img_math": 0, "codecogs_latex": 0, "wp_latex": 0, "mimetex.cgi": 0, "/images/math/codecogs": 0, "mathtex.cgi": 0, "katex": 0, "math-container": 0, "wp-katex-eq": 0, "align": 0, "equation": 0, "x-ck12": 0, "texerror": 0}