Question

If the sum of ( P 15000 ) is deposited in an account earning interest at the rate of ( 12 \% ) compounded quarterly, what will be the principal at the end ( f 10 ) years ? (

Answer 1

To calculate the principal at the end of 10 years with quarterly compounding interest, we can use the formula A = P(1 + r/n)^(nt). For this question, P = 15000, r = 0.12 (12%), n = 4 (quarterly compounding), and t = 10.

Step-by-step explanation:

To calculate the principal at the end of 10 years with quarterly compounding interest, we can use the formula:

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

Where:

• A is the amount at the end of the time period
• P is the principal amount
• r is the annual interest rate (in decimal form)
• n is the number of times the interest is compounded per year
• t is the number of years

For this question, P = 15000, r = 0.12 (12%), n = 4 (quarterly compounding), and t = 10. Plugging in these values into the formula:

A = 15000(1 + 0.12/4)^(4 * 10)