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 comounded 4 times per year?

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$70.00\\ r=rate\to 16\%\to (16)/(100)\to &0.16\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{four times, thus} \end{array}\to &4\\ t=years\to &25 \end{cases} \\\\\\ A=70\left(1+(0.16)/(4)\right)^(4\cdot 25)\implies A=70(1.04)^(100)`

about 3500 bucks.