I am unsure/unaware of the formula and how to use it to complete this problem. Any help is greatly appreciated.
Art invests $2700 in a savings account that pays 9% interest, compounded quarterly. if there are no other transactions, when will his balance reach $4550?
A little bit of an explanation of the formula yeongil gave: If the interest rate is r per year, then it is r/k every "kth" of a year. That is, each "kth" of a year, for principal P, we calculate (r/k)P and add it to P: P+ (r/k)P= P(1+ r/k). Every "kth of a year" we multiply by that (1+ r/k). Since there are k "kths" in a year, in t years, we will have multiplied kt times. Multiplying by the same thing kt times is the same as multiplying by , thus yeongil's formula: .