if $950 are deposited into an account with a 5% interest rate, compounded quarterly, what is the balance…

if $950 are deposited into an account with a 5% interest rate, compounded quarterly, what is the balance after 4 years? f = $? f = p(1 + \\frac{r}{n})^{nt} round to the nearest cent.

if $950 are deposited into an account with a 5% interest rate, compounded quarterly, what is the balance after 4 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

$P = 950$, $r=0.05$, $n = 4$ (compounded quarterly), $t = 4$.

Step2: Substitute values into the compound - interest formula

$F=P(1 +\frac{r}{n})^{nt}=950(1+\frac{0.05}{4})^{4\times4}$.

Step3: Calculate the value inside the parentheses

$1+\frac{0.05}{4}=1 + 0.0125=1.0125$.

Step4: Calculate the exponent

$nt=4\times4 = 16$.

Step5: Calculate the power

$(1.0125)^{16}\approx1.2202947$.

Step6: Calculate the final amount

$F=950\times1.2202947\approx1159.28$.

Answer:

$1159.28$