# Amount at the end of 4 years?

• Jul 10th 2006, 09:29 AM
kwtolley
Amount 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 PM
galactus
Use the formula:

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

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 AM
kwtolley
Thanks
thanks for the formula I have one from my text book but I like yours better.
• Jul 11th 2006, 11:12 AM
topsquark
Quote:

Originally Posted by kwtolley
thanks for the formula I have one from my text book but I like yours better.

What is the formula from your textbook?

-Dan
• Jul 13th 2006, 08:24 AM
kwtolley
formula 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 PM
Soroban
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
This is NOT the formula for the problem you gave.

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 . . . ]