Tom S. answered • 06/26/20
Experienced, Patient Secondary School, College, and SAT/ACT Math Tutor
Hello Kuri,
The formula for compound interest is A = P(1 + r/n)nt.
P is the amount you start with, A is the amount you have after t years and n is the number of payments per year and r is the rate of interest
.
In your problem, P = 10000 and n = 4 and r = 6% or 0.06. You only submitted the beginning of a problem with no question, but the formula would be:
A = 10000(1 + 0.06/4)4t. I will leave it to you to simplify the number inside the parenthesis. If you do have a question asking for the formula, then you will have it.
If they also ask something such as how much money after 2 years, you would simply substitute t = 2 into your formula and use a calculator to get the answer.
