Question
Use the formula A=P(1+r/n)^nt to find the amount in a compound interest account after t years compounded n times a year.
Mary deposited $5,600 in an account which compounded 1.9 percent quarterly and left it there for 10 years. What was the amount in the account at the end of 10 years?
Round to the nearest dollar.
Mary deposited $5,600 in an account which compounded 1.9 percent quarterly and left it there for 10 years. What was the amount in the account at the end of 10 years?
Round to the nearest dollar.
Asked by: USER1165
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354 Answers
Answer (354)
Your problem statement tells you
P = $5600
r = 0.019
n = 4
t = 10
Using the formula, the account balance A is computed as
A = $5600(1 + .019/4)^(4*10)
A ≈ $6769
P = $5600
r = 0.019
n = 4
t = 10
Using the formula, the account balance A is computed as
A = $5600(1 + .019/4)^(4*10)
A ≈ $6769