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You invest $20,000 in an investment account that promises a 6% annual interest, compounded quarterly (that is, four times a year). How much can you expect to have in the account after 1 year? (round to
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You invest $20,000 in an investment account that promises a 6% annual interest, compounded quarterly (that is, four times a year). How much can you expect to have in the account after 1 year? (round to the nearest dollar)

User Asermax
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1 Answer

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A=p (1+r/k)^kn
A future value
P present value 20000
R interest rate 0.06
K compounded quarterly 4
N time 1 year

A=20,000×(1+0.06÷4)^(4×1)
A=21,227.27
User Sishu
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