find the total amount a college student has in his savings account if $11,00 was invested and earned 5% compound quarterly for 10 years.

Question

find the total amount a college student has in his savings account if $11,00 was invested and earned 5% compound quarterly for 10 years.

Answer 1

Compounding interest formula: A = P*(1+r/n)^(n*t)

Return: A
Initial investment: P = 11,000
Annual interest: r = .05
How often the interest is compounded per year: n = quarterly (4 times per year)
Number of years compounding: t = 10

A = 11000(1+.05/4)^(4*10)
A = $18,080