Question

Suppose that you invest $10,000 into an account that earns interest at a rate of 4.5% per year compounded quarterly (four times per year) for an investment period of 5 years. How much money is in the account at the end of the 5 year period? Round your answer to the nearest cent. Do not use spaces or commas in your answer. For example, if the answer is $13,546.3765 then enter your answer as: 13546.38

Answer 1

Given:

There are given to invest amount is $10,000.

Step-by-step explanation:

According to the question:

We need to find the total amount after 5 years:

So,

From the formula:

`C=P[(1+r)^(4n)-1]`

Where,

`\begin{gathered} P=10000 \\ r=4.5=0.045 \\ n=5 \end{gathered}`

Then,

Put all the values into the given formula:

So,

`\begin{gathered} C=P[(1+r)^(4n)-1] \\ C=10000[(1+0.045)^(4*5)-1] \\ C=10000[(1.045)^(20)-1] \end{gathered}`

Then,

`\begin{gathered} C=10,000[(1.045)^(20)-1] \\ C=10000[2.4117-1] \\ C=10000(1.422) \\ C=14220 \end{gathered}`

Then,