Answer:
The money in the account at the end of 2 years is $424.64 .
Step-by-step explanation:
Formula
[tex]A = p (1+\frac{r}{n})^{nt}[/tex]
Where A is the amount , r is the rate of interest in the decimal form , t is the time in years and n is compouding period .
As given
Jim opened an account with $400. The account pays 3 percent quarterly. How much is in the account at the end of 2 years .
p = $400
n = 4
t = 2 years
3% is written in the decimal form
[tex]= \frac{3}{100}[/tex]
= 0.03
r = 0.03
Put all the values in the formula
[tex]A = 400(1+\frac{0.03}{4})^{4\times 2}[/tex]
[tex]A = 400(1+0.0075)^{8}[/tex]
[tex]A = 400(1.0075)^{8}[/tex]
A = 400 × 1.0616
A = $424.64
Therefore the money in the account at the end of 2 years is $424.64 .
