Question

10,000 is compounded quarterly at 12% interest for t years, what expression represents the amount of money after t years

Answer 1

Answer: 10,000(1.03)⁴ˣ

Explanation:

A = P(1 +
`(r)/(n)`)ⁿˣ

A is the amount (new balance): unknown

P is the principal (amount you started with): 10,000

r is the interest rate: 12% = .12

n is the number of times per year it is compounded: quarterly = 4

x is the number of years: x

A = 10,000(1 +
`(.12)/(4)`)⁴ˣ

= 10,000(1 + .03)⁴ˣ

= 10,000(1.03)⁴ˣ