Question

Find the amount in a bank account if you deposited $10,000 for 25 years at 6.25% interest compounded quarterly.

Answer 1

Ok, so the formula for compound QUARTERLY is A=P(1+ʳ/n)ⁿᵗ.
P= The initial amount.
R= The Rate
T= The Time/Number of Years
N= Number of time interest is compounded per year. (In this case its 4 because it compounded QUARTERLY.)

So if you input the numbers, you will get A=10,000(1+0.0625/4)⁴⁽²⁵⁾
Now solve inside the parenthesis.
10,0 00(1.0625/4)⁴⁽²⁵⁾
Now you will need a calculator for the next part...
Do 1.0625/4 and times it by 10,000 .
You will get 0.0265265. You can't for get about the ⁴⁽²⁵⁾.
⁴⁽²⁵⁾=¹⁰⁰
2,656.25¹⁰⁰=
$47134.43 Hope This Helped!