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Paula is investing $5,000 in an account that earns 4.10% APR compounded quarterly. How much

money will she have in 25 years?

2 Answers

5 votes

$15,556.84

Paulanwill have approx $15,556.84 if she investb$5k that earns 4.10% apr compound quarterly..

User Mu Is Too Short
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8.3k points
3 votes

Answer:

I’m pretty sure it’s $11,780.60

Explanation:

We can use the formula for compound interest to determine how much money Paula will have in 25 years:

A = P(1 + r/n)^(nt)where:A = the total amount of money after t years

P = the principal amount (the initial investment)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the number of years

In this case, we have:

P = $5,000

r = 4.10% = 0.041 (as a decimal)

n = 4 (compounded quarterly)

t = 25 years

Plugging these values into the formula, we get:

A = $5,000(1 + 0.041/4)^(4*25)

A = $5,000(1 + 0.01025)^100

A = $5,000(1.01025)^100

A = $5,000(2.356)

A = $11,780.60

Therefore, Paula will have approximately $11,780.60 in her account after 25 years.

User Tushar Jadav
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8.0k points