anonymous
  • anonymous
Fernando has a savings account balance of $2,471.23. The interest rate on the account is 2.4% compounded quarterly. If he opened the account nine years ago, what was the value of his initial deposit?
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
chestercat
  • chestercat
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
In 9 yrs there are 36 quarters. The interest rate is 2.4/4 per quarter just stick those into the compound interest formula - it needs the rate & number of periods to be THE SAME TIME UNITS.
anonymous
  • anonymous
Fernando is such a boss name. don't you think? :)
Directrix
  • Directrix
A = P [( 1 + ( r / n) ] ^ (nt) P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

Directrix
  • Directrix
2471.23 = P [ ( 1 + (.024)/ 4 ] ^ [ (4)(9)]
Directrix
  • Directrix
2471.23 = P [ (1 + .006) ] ^ 36
Directrix
  • Directrix
2471.23 = P [ 1.006 ] ^ 36
Directrix
  • Directrix
2471.23 = 1.24 P P = $ 1 992 . 93 approximately
Directrix
  • Directrix
@ merengat --> Will you post your work? Or, find the error in mine, please. Thanks.
dumbcow
  • dumbcow
correct, without rounding i get 1992.44
anonymous
  • anonymous
Call a i deposit on a monthly x is the interest rate n is the number of months post we have After January, the amount of a + ax = a (x + 1) fra In early February: a×(x+1)+a=a×(x+1+1)=(ax)[(1+x)2−1] After February: (ax)[(1+x)2−1]+(ax)[(1+x)2−1]x=(ax)[(1+x)2−1]x=(ax)[(1+x)2−1]((x+1)) ...... After n months, the amount of principal and interest are: (ax)(x+1)[(1+x)n−1] Applying the formula, instead of on and

Looking for something else?

Not the answer you are looking for? Search for more explanations.