Final answer:
To find the future balance of a $1500 deposit with 7% interest compounded quarterly after 15 years, you can use the compound interest formula and substitute the appropriate values to calculate the total future amount.
Step-by-step explanation:
To calculate the balance of $1500 deposited into an account with a 7% interest rate, compounded quarterly, after 15 years, you will use the compound interest formula:
F = P(1 + r/n)nt
Where:
-
- P is the principal amount (the initial amount of money)
-
- r is the annual interest rate (decimal)
-
- n is the number of times that interest is compounded per year
-
- t is the time the money is invested for, in years
Steps to calculate the future balance:
-
- Convert the interest rate from a percentage to a decimal: 7% = 0.07
-
- Since the interest is compounded quarterly, n = 4
-
- Substitute the values into the formula: F = 1500(1 + 0.07/4)4 * 15
-
- Calculate the amount: F ≈ 1500(1.0175)60
-
- Use a calculator to find the value of (1.0175)60
-
- Multiply this value by 1500 to find the future balance
Using these steps, you can determine the total future amount in the account after 15 years.