The amount after 10 years will be?

Question

How much money will there be in an account at the end of 10 years if $15000 is deposited at 6% interest compounded quarterly? (Assume no withdrawals are made.) The amount after 10 years will be?

Answer 1

Hi Shelby,

Use the formula  P(1+ (r/n))^nt

 

P= principal

r = rate converted to a decimal

n= number of compounding periods

t = number of years.

 

15,000 ( 1 + (.06/4)^4(10)

 

Follow order of operations when simplifying.

 

15,000 (1.015)^40 = $27,210.28