Question
What is the ending balance in an account that opebs with $7000, earns 7.5% interest compound quarterly, and is held for 20 years.
Answers
Henry
Pt = Po(1+r)^n.
r=(7.5%/4) / 100%=0.01875 = Quarterly % rate expressed as a decimal.
n = 4Comp./yr * 20yrs = 80 Compounding
periods.
Pt = 7000(1.01875)^80 = $30,939.11
r=(7.5%/4) / 100%=0.01875 = Quarterly % rate expressed as a decimal.
n = 4Comp./yr * 20yrs = 80 Compounding
periods.
Pt = 7000(1.01875)^80 = $30,939.11