Question

An initial balance of $4,000 grows at a rate of 12.3% compounded quarterly. What is the balance after 5 years?

Answer 1

7330.36

Explanation:

A = P (1+i)^n

n = 4×5 = 20

i = 0.03075

12.3% / 4 = 3.075 × 1/100

= 0.03075

A = 4000 ( 1+ 0.03075 ) ^20

= 7330.36