Question

Brittany opened a savings account with an annual interest rate of 10% and an initial deposit of $7000. If her interest is compounded quarterly, how much is in Brittany’s account after 5 years? interest compounded quarterly: A = P (1 + )4t

A.
$3500.00

B.
$4470.32

C.
$11,273.57

D.
$11,470.32

Answer 1

A = 7000(1+0.1/4)4(5)
= 7000(1.02500)²⁰
= D
The answer is D.

Hope this helps :)

Answer 2

Initial Deposit = $7000

It means P= $7000

rate of interest = 10%

So , r = 0.10

compounded quarterly , so n = 4

and we have to find the amount after 5 years , So t = 5

Now the formula we use here is

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

`A= 7000(1+(0.10)/(4) )^((4)(5))`

`A= 7000(1.025 )^((20))`

`A= 7000(1.63861644029)`

`A= 11470.315`

So amount after 5 years = $11470.315