Question

$5000 is compounded quartely at a rate of 10% . find the total amount in the componded interest account at the end of 20 years. the componded interest factor is 7.20957

Answer 1

Answer: what he said^

Explanation:

Answer 2

`A = P (1 + (r)/(n) )^((nt))` is formula for compounded quarterly interest rate.

Where P = 5000, r = 10% = .10, n = 4 (since its compounded quarterly), and t = 20

Now we plug all variables into the equation.



`A = 5000 (1 + (.10)/(4) )^((4*20)) = 36047.839`

The answer is $36,047.84