Solve the problem.
-Find the amount in a savings account at the end of 7 years if the amount originally deposited is $3,000 and the interest rate is 5.5% compounded quarterly. Use: $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$ where:
$\mathrm { A } =$ final amount
$\mathrm { P } = \$ 3,000$ (the initial deposit)
$r = 5.5 \% = 0.055$ (the annual rate of interest)
$\mathrm { n } = 4$ (the number of times interest is compounded each year)
$t = 7$ (the duration of the deposit in years)
A) $\$ 85,155.00$
B) $\$ 4,397.29$
C) $\$ 3,300.94$
D) $\$ 4,837.02$

Question

Quizplus · Accepted Answer

Using the formula $A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$, where $P = \$3,000$, $r = 0.055$, $n = 4$, and $t = 7$, we calculate the final amount as follows: $A = 3000 \left( 1 + \frac { 0.055 } { 4 } \right) ^ { 4 \times 7 }$, which simplifies to approximately \$4,397.29.

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