Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
To calculate the final amount for a $10,000 CD at 4.50% interest for 4 years compounded quarterly, we'll use the compound interest formula:
[ A = Pleft(1 + frac{r}{n}right)^{nt} ]
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (in decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
Given:
- Principal amount (P) = $10,000
- Annual interest rate (r) = 4.50% = 0.045
- Compounding frequency (n) = Quarterly
- Time (t) = 4 years
Now, let's plug these values into the formula:
[ A = 10000left(1 + frac{0.045}{4}right)^{4 times 4} ]
Let's calculate:
[ A = 10000left(1 + frac{0.045}{4}right)^{16} ]
[ A = 10000left(1 + frac{0.01125}{1}right)^{16} ]
[ A = 10000(1.01125)^{16} ]
[ A ≈ 10000(1.193435318) ]
[ A ≈ 11934.35 ]
So, at the end of 4 years compounded quarterly, the amount in the certificate of deposit would be approximately $11,934.35.
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.