Question

Complete the problems. (From Example 2)

1. How much compound interest will $50,000 have earned in 10 years at 6.4% annual interest compounded
quarterly?

Answer 1

Compound interest is $7,037,339.2

Explanation:

`{ \boxed{ \bf{A=P(1+ (r)/(100) ) {}^(n) }}}`

substitute:

`{ \sf{ = 50000(1 + (6.4)/(100)) {}^(10) }} \\ \\ = { \sf{50000(1.64) {}^(10) }} \\ \\ { = \sf{7037339.2}}`