**Question:**How much money will be in the savings account after 3 years? Round your answer to the nearest cent.**Answer Box:**- Enter your answer in the provided text box prefixed by the dollar sign ($).Note: Please make sure to apply the appropriate mathematical formula or calculation method to determine the future value in the account, such as using compound interest, if relevant. A person puts $6,500 in a savings account. The bank pays 7% annual interest compounded quarterly.\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]\[ A = 6,500 \left(1.0175\right)^{4t} \]**Explanation of Variables:**- $ A $ is the amount of money accumulated after n years, including interest.- $ P $ is the principal amount (the initial amount of money), which is $6,500.- $ r $ is the annual interest rate (decimal), which is 0.07 for 7%.- $ n $ is the number of times that interest is compounded per year, which is 4 (quarterly).- $ t $ is the number of years the money is invested for.The equation shows how the compound interest formula is applied to calculate the future value of the investment. The compound interest leads to exponential growth of the savings over time.

NOTE: Refresh your page if you can't see any equations. . here we have P=6500 r=7%=0.07 n=4 for…

Answered: A person puts $6,500 in a savings…

A person puts $6,500 in a savings account. The bank pays 7% annual interest compounded quarterly. nt A = P (1+ )" A = 6, 500 (1.0175)* n 4t

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

A person puts $6,500 in a savings account. The bank pays 7% annual interest compounded quarterly.

\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]

\[ A = 6,500 \left(1.0175\right)^{4t} \]

**Explanation of Variables:**
- $ A $ is the amount of money accumulated after n years, including interest.
- $ P $ is the principal amount (the initial amount of money), which is $6,500.
- $ r $ is the annual interest rate (decimal), which is 0.07 for 7%.
- $ n $ is the number of times that interest is compounded per year, which is 4 (quarterly).
- $ t $ is the number of years the money is invested for.

The equation shows how the compound interest formula is applied to calculate the future value of the investment. The compound interest leads to exponential growth of the savings over time.

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