We will use the compound interest formula, which is
A = P(1+r/n)^(n*t)
The variables are
A = amount in the account after t years P = initial amount invested r = interest rate (in decimal form) n = compounding frequency t = number of years
In this case
A = unknown (we're solving for this) P = 3500 r = 0.08 (8% = 8/100 = 0.08) n = 4 (compound quarterly ---> compound 4 times a year) t = 17
------------------------------------------
Plug all these values into the equation to get...
A = P(1+r/n)^(n*t) A = 3500(1+0.08/4)^(4*17) A = 3500(1+0.02)^(4*17) A = 3500(1.02)^(4*17) A = 3500(1.02)^(68) A = 3500(3.8442505025456) A = 13454.8767589096 A = 13454.88
This means that you will have $13454.88 in the account after 17 years
