Question

Felicia invested $25,000 into an account earning 3% annual interest compounded quarterly. she makes no other deposits into the account and does not withdraw any money. what is the balance of felicia's account in 9 years?

Answer 1

the answer is $32,716.13 i just took the test and got it right

Answer 2

Balance of Felicia's account in 9 years be $32717.5 .

Explanation :

Formula

`Amount = P (1+(r)/(4))^(4t)`

Where P is the principle , r is the rate of interest in the decimal form and t in the time in the years .

As given

Felicia invested $25,000 into an account earning 3% annual interest compounded quarterly for 9 years .

As

P = $25000

3% is written in the decimal form.

`= (3)/(100)`

= 0.03

t = 3 years

Putting all the values in the formula

`Amount = 25000 (1+(0.03)/(4))^(4* 9)`

`Amount = 25000 (1+(0.03)/(4))^(36)`

`Amount = 25000 (1+0.0075)^(36)`

`Amount = 25000 (1.0075)^(36)`

`Amount = 25000* 1.3087\ (Approx)`

`Amount = \$32717.5`

Therefore the balance of Felicia's account in 9 years be $ 32717.5 .