Question

Heather invests $3572 in a retirement account with a fixed annual rate of 5% compounded 4 times per year what will the account balance be after 16 years

Answer 1

$7910.3

Explanation:

Given data

P=$3572

n=4

T=16 years

R= 5%

The compound interest is expressed as

A= P(1+r/n)^nt

Substitute

A=3572(1+0.05/4)^16*4

A=3572(1+0.0125)^64

A=3572(1.0125)^64

A=3572*2.21453241061

A=$7910.3