en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

An investment broker deposits 1000 into an account that earns 12% annual interest compounded quarterly. What is the value of the investment after 2 years?

Solution

implicit derivative

in v es t m e n t b ro k er d e p os i t s 1000 in t o an a cco u n t t ha t e a r n s 12% ann u a l in t eres t co m p o u n d e d q u a r t er l y . Wha t i s t h e v a l u e o f t h e in v es t m e n t a f t er 2 ye a rs ?

Solution

Amount : 1266.77

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.12}{4})^{4 \cdot 2}

1000 (1 + \frac{0.12}{4})^{4 \cdot 2} = 1266.77008 \dots

Round to the nearest hundredth:

1266.77

Amount : 1266.77

Popular Examples

find two consecutive integers such that twice the smaller diminished by the larger is 71 a number increased by 8 john has 3 apples.and there are 3 left. how much did he ate You deposit 5000 in an account earning 8% interest compounded monthly. How much will you have in the account in 20 years?The circumference of a circle is 232.36 kilometers. What is the circle's radius?Use pi= 3.14 and round your answer to the nearest hundredth.