if $800 are deposited into an account with a 6.5% interest rate, compounded quarterly, what is the balance…

if $800 are deposited into an account with a 6.5% interest rate, compounded quarterly, what is the balance after 5 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

if $800 are deposited into an account with a 6.5% interest rate, compounded quarterly, what is the balance after 5 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

Answer

Explanation:

Step1: Identify the values of P, r, n, and t

$P = 800$, $r=0.065$, $n = 4$ (quarter - ly compounding), $t = 5$

Step2: Substitute values into the compound - interest formula

$F=P(1 +\frac{r}{n})^{nt}=800(1+\frac{0.065}{4})^{4\times5}$

Step3: Calculate the value inside the parentheses

$1+\frac{0.065}{4}=1 + 0.01625=1.01625$

Step4: Calculate the exponent

$nt=4\times5 = 20$

Step5: Calculate the power

$(1.01625)^{20}\approx1.38293$

Step6: Calculate the final amount

$F = 800\times1.38293=1106.344\approx1106.34$

Answer:

$1106.34$