Jason T. answered • 09/05/13

Tutor

4.9
(173)
Master's degree in math education

Remember that the formula for interest problems is: A = P(1+(i/n))

^{nt}where A = amount

P = principal (the dollars you start with)

i = annual interest rate

n = number of times compounded per year

t = number of years

In this problem P = 700, i = 0.085, n = 4 (quarterly), and t = 10

So, the equation becomes A = 700(1 + (0.085/4))

^{4*10}