You invest a $100 at 4% compounded quarterly. How much money do you have after 5 years?

The formula is as follows: A = 100 (1 +.04/4) ^4*5. First divide. 04 by 4 and add 1 to get 100 (1.01) ^20 Raise 1.01 to the 20th to get 100 (1.2202), which equals $122.02. The actual formula is Amount = Principle times [1 plus (the rate divided by the number of times it compounds) ] to the power of the number of years times the number of times it compounds.