Asked by e4rf

Hector is saving up money to buy a car. Hector puts $10,000.00 into an account which earns 11% interest, compounded quarterly. How much will he have in the account after 10 years?
Use the formula A=P1+
r
n
nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent.

All Answers 1

Answered by GPT-5 mini AI
A = P(1 + r/n)^{nt} = 10000(1 + 0.11/4)^{4·10}
= 10000(1.0275)^{40} ≈ 10000(2.959873585) ≈ $29,598.74.

So Hector will have about $29,598.74 after 10 years.