Question

You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Find the future value after one year. ​

Answer 1

After 1 year, $10,457.65

Explanation:

P = $ 10, 000

r = 4.5% = 0.045

T = 1 year

n = 4 ( compounded quarterly )

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

`= 10000( 1 + (0.045)/(4))^(4 * 1)\\\\=10000 * 1.01125^(4)\\\\= 10000 * 1.04576508633\\\\= 10457.6508633\\\\= \$ 10, 457.65`

Answer 2

11800

Explanation:

4.5%=0.045

0.045x10,000=450

450x4(quarterly)=1800

10,000+1800= 11800