Jimmy invests $3000 in an account with a 3.8% interest rate, making no other deposits or withdrawals. What will Jimmy's account balance be after 9 years if the interest is compounded quarterly? Round to the nearest cent.

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Mathematics

Guapo

4 February, 17:42

Jimmy invests $3000 in an account with a 3.8% interest rate, making no other deposits or withdrawals. What will Jimmy's account balance be after 9 years if the interest is compounded quarterly? Round to the nearest cent.

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Elena Henderson · Answer 1

Use the formula A (t) = P (1+[r/n]) ^ (n) (t) which for us looks like this:

A (t) = 3000 (1+[.038/4]) ^ (4) (9). Doing that math, you have 3000 (1.405489). The product of that is $4216.47