$8,200 is invested in an account with a 2.1% ...
$8,200 is invested in an account with a 2.1% interest rate that is compounded quarterly. how much money is in the account at the end of one year? round to the nearest cent.
Answer
# Answer:
$8372.17$
# Explanation:
## Step1: Identify compound - interest formula
$A = P(1+\frac{r}{n})^{nt}$
## Step2: Define variables
$P = 8200$, $r=0.021$, $n = 4$, $t = 1$
## Step3: Substitute values into formula
$A=8200(1 +\frac{0.021}{4})^{4\times1}$
## Step4: Calculate inside the parentheses
$1+\frac{0.021}{4}=1 + 0.00525=1.00525$
## Step5: Calculate the exponent
$(1.00525)^{4}\approx1.021118$
## Step6: Multiply by the principal
$A = 8200\times1.021118\approx8372.17$