Question
Kenny will invest $16,000 in an account with an annual interest rate of 5% and the interest is compounded quarterly. How much money will be in the account in 7 years?
How will I set this up?
How will I set this up?
Answers
Anonymous
r = .05/4 = .0125
every quarter year multiply by 1.0125
7 years = 28 quarter years
so
16,000 * 1.0125^28
= $ 22,655.88
every quarter year multiply by 1.0125
7 years = 28 quarter years
so
16,000 * 1.0125^28
= $ 22,655.88