Question

Zoe invested $16,000 in an account paying an interest rate of 3.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 20 years?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$16000\\ r=rate\to 3.6\%\to (3.6)/(100)\dotfill &0.036\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &20 \end{cases} \\\\\\ A=16000\left(1+(0.036)/(4)\right)^(4\cdot 20)\implies A=16000(1.009)^(20)\implies A\approx 19100`