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Write a compound interest function to model the following situation. Then, find the balance after the given number of years.

$19,600 invested at a rate of 3.5% compounded quarterly; 5 years
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sqdancefan

Answer:

  $23,330.66

Step-by-step explanation:

The compound interest function is ...

  FV = P(1 +r/n)^(nt)

where P is the principal amount ($19,600), n is the number of compoundings per year (4), r is the interest rate (.035), and t is the number of years (5).

Putting these numbers into the formula and doing the arithmetic, we get ...

  FV = $19,600(1 +.035/4)^(4·5) = $23,330.66