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Marie invested $10,000 in a savings account that pays 2% interest quarterly (4 times a year). How much money will she have in her account in 7 years?

a. $11,483.08
b. $10,408.16
c. $10,600.00
d. $12,205.02

User Adivasile
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1 Answer

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Final answer:

To calculate the amount of money Marie will have in her account in 7 years, we can use the formula for compound interest. Marie invested $10,000 at an interest rate of 2% compounded quarterly. The total amount of money she will have in her account after 7 years is approximately $11,483.08.

Step-by-step explanation:

To calculate the amount of money Marie will have in her account in 7 years, we can use the formula for compound interest:

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

Where:

  • A is the final amount
  • P is the principal (initial amount)
  • r is the annual interest rate (expressed as a decimal)
  • n is the number of times the interest is compounded per year
  • t is the number of years

In this case, Marie invested $10,000, the interest rate is 2% (or 0.02), and the interest is compounded quarterly (4 times a year). So, we have:

A = 10000(1 + 0.02/4)^(4 * 7)

Calculating this formula gives us an amount of approximately $11,483.08. Therefore, the answer is a. $11,483.08.

User Exoslav
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