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
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.)
3 answers
Would it be $24,270.28 ?
Yes, that's what I get, too
3 answers