Asked by Jacinta
Use the compound interest formula
$18,000 is invested in an account paying 3% interest compounded quarterly. Find the amount of money in the account at the end of 10 years. (Show values substituted in the formula, and calculate the numerical amount.)
$18,000 is invested in an account paying 3% interest compounded quarterly. Find the amount of money in the account at the end of 10 years. (Show values substituted in the formula, and calculate the numerical amount.)
Answers
Answered by
drwls
The formula for the value after ten years is 18,000*(1.0075)^40, because there are 40 interest-paying events and each time the principal increases by a factor 1.0075, as 1/4 of 3% is added.
Now do the calculation
Now do the calculation
Answered by
Jacinta
Would it be $24,270.28 ?
Answered by
drwls
Yes, that's what I get, too
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