$1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 thanks for looking over this problem.

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- Jul 10th 2006, 09:29 AMkwtolleyAmount at the end of 4 years?
$1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 thanks for looking over this problem.

- Jul 10th 2006, 12:39 PMgalactus
Use the formula:

$\displaystyle A=P\left(1+\frac{r}{n}\right)^{nt}$

P=principal

r=interest in decimal form

n=number of interest periods per year

t=number of years invested

A=amount after t years - Jul 11th 2006, 07:56 AMkwtolleyThanks
thanks for the formula I have one from my text book but I like yours better.

- Jul 11th 2006, 11:12 AMtopsquarkQuote:

Originally Posted by**kwtolley**

-Dan - Jul 13th 2006, 08:24 AMkwtolleyformula or sinking fund
A=R[(1+i)^n-1 / i]

A=value of the annuity after n payments

n=number of payments

i=periodic interest rate

R=amount of each periodic payment - Jul 13th 2006, 12:55 PMSoroban
Hello, kwtolley!

Quote:

A=R[(1+i)^n-1 / i]

A=value of the annuity after n payments

n=number of payments

i=periodic interest rate

R=amount of each periodic payment

That is for an Annuity, where payments are made in the account periodically.

You problem had a one-time investment of $1800 which is left unchanged for four years.

{What you're doing is using the Distance Formula to find the price of eggs . . . ]