Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of ​$15 comma 000 is deposited in an account at an annual interest rate of 3​% and the interest is compounded quarterly.
Question content area bottom
Part 1
The amount after 10 years will be ​$
  
enter your response here.
​(Round to the nearest cent as​ needed.)

Sagot :

sqdancefan

Answer:

  $20,225.23

Step-by-step explanation:

You want the future value of a $15,000 deposit that earns 3% interest compounded quarterly for 10 years.

Compound interest

The account value is given by the formula ...

  [tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]

where principal P earns interest at rate r compounded n times per year for t years.

Here, this becomes ...

  [tex]A=15000(1+\dfrac{0.03}{4})^{4\cdot10}=15000\cdot1.0075^{40}\approx20225.229[/tex]

The amount after 10 years will be $20,225.23.

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.