Question

a $22,000 deposit at an apr of 5.1% with a quarterly compounding for 25 years. after 25 years will be

Answer 1

After 25 years the amount will be $78099.34.

Explanation:

The compound interest formula is ;

`A=p(1+r/n)^(nt)`

Where p = 22000

r = 5.1% or 0.051

n = 4

t = 25

So, putting the values in formula we get;

`A=22000(1+0.051/4)^(100)`

`A=22000(1.01275)^(100)`

A = $78099.34

Therefore, after 25 years the amount will be $78099.34.