Question

At age 10​, a person deposits ​$385 in a savings account paying ​%2 interest compounded quarterly. How much money will be in the account 60 years​ later, when he is 70 years​ old? Would his savings have double in that​ time?

Answer 1

Interest rate = .02 / 4 = .005 per quarter for 240 quaarters

A = 385 (1 + 005)^240

A = 3.31 * 385 =$1274

Yes, it would double