## anonymous one year ago You invest an initial \$1,000 in an account that has an annual interest rate of 2%, compounded quarterly. How much money will you have in the account after 5 years? Round your answer to the nearest whole number.

1. anonymous

2. kropot72

$\large A=P(1+\frac{r}{n})^{nt}$ where A is the amount of the principal P after t years, r is the annual interest rate as a decimal fraction and n is the number of compounding periods per year. Do you follow so far?

3. anonymous

yes, i'm following you.

4. kropot72

Good. Can you now plug the given values into the equation and post the result?

5. anonymous

i'm having some trouble doing this...

6. kropot72

What part are you having trouble with?

7. anonymous

plugging the numbers and such in...

8. kropot72

Well I'll plug them in for you, and hopefully you'll see that its not very difficult. $\large A=1000(1+\frac{0.02}{4})^{(4\times5)}$

9. anonymous

thank you!

10. kropot72

You're welcome :)

11. anonymous

:)