Mathematics: Valerie deposits $1,900 in an account that earns 3% interest, compounded quarterly. How much is in the account after six years?

Valerie deposits $1,900 in an account that earns

Ответ:

Asterisk

16.03.2022

Mathematics

$2273.19

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Compound Interest Rate Formula: $\displaystyle A = P(1 + \frac{r}{n})^{nt}$

A is final amountP is principle amountr is raten is compound ratet is time (in years)

Step-by-step explanation:

Step 1: Identify Variables

P = $1900

r = 3% = 0.03

n = 4

Step 2: Solve for A

Substitute [CIRF]: $\displaystyle A = 1900(1 + \frac{0.03}{4})^{4(6)}$ (Parenthesis) Divide: $\displaystyle A = 1900(1 + 0.0075)^{4(6)}$ (Parenthesis) Add: $\displaystyle A = 1900(1.0075)^{4(6)}$ (Exponents) Multiply: $\displaystyle A = 1900(1.0075)^{24}$ Exponents: $\displaystyle A = 1900(1.19641)$ Multiply: $\displaystyle A = 2273.19$