Question

Niya deposits $165,000 into an account that earns 3.275% interest compounded quarterly. How much interest does Niya earn over the term of the investment, 20 years? Round to the nearest cent.

Answer 1

$316,802.52

Explanation:

F = P(1 + r/n)^(nt)

F = $165,000(1 + 0.03275/4)^(4 × 20)

F = $316,802.52