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Tatiana is thinking about putting $200 in a savings account that earns 4% interest compounded quarterly. She wants to keep that money in the account for 4 years. Which of the formulas below can help her calculate how much money she will have at the end of the 4 years? A. $200(1 + 0.16)1 B. $200(1 + 0.04)4 C. $200(1 + 0.01)16 D. $200(1 + 0.02)8

Verified Answer :

wolf1728

Total = 200 (1 + .04 / 4) ^ 44
Total = 200 * (1 + .01) ^ 16
The answer is C

Answer:

C. \(200(1+0.01)^{16}\)

Step-by-step explanation:

We are given that,

Initial investment, P = $200

Rate of interest, r = 4% = 0.04

Time period, t = 4

It is required to find the formula for the money which is compounded quarterly.

The compound interest is given by \(A=P(1+\frac{r}{n})^{nt}\)

Substituting the value, we have,

\(A=200(1+\frac{0.04}{4})^{4\times 4}\)

i.e. \(A=200(1+0.01)^{16}\)

Hence, the formula for the money after 4 years is \(200(1+0.01)^{16}\).

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