Question

Find the accumulated value if the money is compounded quarterly?

Answer 1

Part b.

In this case, the money is compounded quarterly, this means that n=4 (4 times per year). So, by substrituting the given values into the compound interes formula, wer have

`A=15000(1+(0.045)/(4))^(4*5)`

which gives:

`A=18761.26`