Question

$2250 is deposited in an account that pays 6 annual interest compounded quarterly. find the balance after 10 years

Answer 1

`\$4,081.54`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=10\ years\\ P=\$2,250\\ r=0.06\\n=4`

substitute in the formula above

`A=\$2,250(1+(0.06)/(4))^(4*10)=\$4,081.54`