Brenda invests $4500 in the savings account earning 5.5% interest compounded quarterly. What will the account balance be after seven years?

The account balance will be $6642 after seven years.

Step-by-step explanation:

To find the amount after seven years, a certain formula is used.

Amount =

where,

P is the principal amount that is invested in the account.

Therefore, P = 4500 dollars.

r is the rate of interest. (r = 5.5 %)

Therefore, r = 5.5/100 = 0.055

n is the number of time the interest is compounded per year which is n= 4.

t is the time period which is t = 7 years.

Now, substituting all the above values in the formula,

Amount =

⇒

⇒

⇒

⇒ 6641.55 (which is approximately equal to 6642)

⇒ 6642 dollars.

The account balance after 7 years is $6642.

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step-by-step explanation: