Question

Mary deposited $5,600 in an account, which compounded 1.9 percent quarterly, and left it there for 10 years. What was the amount in the account at the end of 10 years?

Answer 1

The formula for compounded quarterly interest is:

`A=S(1+ (r)/(n) )^(n*t)`

S is the initial amount
We are adding one because it is an increase of money.
r is the rate in decimal
n is how often money is added during one year
t is the time in years

Now we plug in variables into the equation.


`A=5600(1+ (0.019)/(4) )^(4*10)`

A = 6768.75

The answer is $6768.75 would be the amount of money in the account at the end of 10 years.