Question

an account starts with $500 and is compounded quarterly at 5% interest how much is the account worth after 10 years

Answer 1

$1500

Explanation:

First, converting R percent to r a decimal

r = R/100 = 20%/100 = 0.2 per year,

then, solving our equation

I = 500 × 0.2 × 10 = 1000

I = $ 1,000.00

The simple interest accumulated

on a principal of $ 500.00

at a rate of 20% per year

for 10 years is $ 1,000.00.