Question

If you deposit $4500 at 5% annual compound quarterly, how much money will be in the account after 10 years?

Answer 1

Formula = FV = P
`[ 1+(r)/(n)]^n^t`

FV = future value of the deposit
P = principal or amount of money deposited
r = annual interest rate (in decimal form)
n = number of times compounded per year
t = time in years

Plug in the values then simplify :

FV =
`4500~[1+ (0.05)/(4) ]^4^(^1^0^)`

FV =
`4500~(1.0125)^4^0`

FV = 4500 (1.64361946349)

FV = 7396.28758569

Round your final answer to two decimals places.

FV = 7396.29

After 10 years, there will be $7396.29 in the account :)