Question

Suppose that when your friend was born, your friends parents deposited $7000 in an account paying 5.5% interest compounded quarterly. What will the account balance be after 13 years?

Answer 1

$96,005, Because $7000 plus this interest. Which 5.5% equals 385, so $7000 plus 385 equals $7385, then you multiply $7386 times 13 and you get $96,005.