You have just deposited $2,500 into a bank account that pays a compounded quarterly interest rate of 4.0%. If you add $5,000 to the account one year (4 quarters) from now and $7,500 two years from now (8 quarters) how much will be in the account three years (12 quarters) from now?

Answer rating: 100% (QA)

SOLUTION To solve this problem we can use the formula for compound interest A P1 rnnt Where A final amount P initial principal r annual interest rate ... View the full answer