Question

What is the final amount of $70.00 that is put into a savings account with 16% interest rate for 25 years, if the interest is compounded 4 times per year?

Answer 1

Okay, 16% of $70.00 is
$11.20
It says it was compounde 4 times a year for 25 years.
11.2 × 4 = 44.80
Thats how much is collected every year ($44.80)
Now multiply $44.80 by 25 years
44.80 × 25 = 1120.00
They compounded $1120.00 in 25 years.
Add that to your starting $70.00

The Final Amount is $1190.00