Question

Walters savings account has a balance of $273. After 5 years, what will the amount of interest be at 5% compounded quarterly?

Answer 1

The answer is $350

The formula is as follows:
`P(1+r/n) ^(nt)`

P: Principal Amount : $273
r: Rate of interest: 5%
n: number of times the interest is compounded: 4 (Since Quarterly)
t: number of years : 5