Question

Katie's saving up money to buy a car. Katie puts 10000.00 into an account that earns 8% interest, compounded quarterly. How much will she have in the account after 10 years ?

Answer 1

Step 1: Problem

Katie's saving up money to buy a car. Katie puts 10000.00 into an account that earns 8% interest, compounded quarterly. How much will she have in the account after 10 years?​

Step 2: Concept

`\begin{gathered} A=P(1+r)^t \\ A\text{ = Future amount} \\ P\text{ = Principal} \\ r\text{ = Rate} \\ t\text{ = Time } \end{gathered}`

Step 3: Method

Given data

P = $10,000.00

r = 8% = 8/100 = 0.08

t = 10 x 3 = 30

`\begin{gathered} A=P(1+r)^t \\ =10000(1+0.08)^(30) \\ =10000(1.08)^(30) \\ =\text{ 10000 }*\text{ 10.06265} \\ =\text{ \$100,626.56} \end{gathered}`

Step 4: Final answer

Amount she has in her account after 10 years = $100,626.56