Question

Write a compound interest function to model the following situation. Then, find the balance after the

given number of years.
$13,700 invested at a rate of 2% compounded quarterly; 6 years

Answer 1

The balance after the 6 years of investment will be $ 15,442.08.

Explanation:

Given that $ 13,700 was invested at a rate of 2% compounded quarterly during 6 years, to determine the final result of the investment, the following calculation must be performed:

13,700 x (1 + 0.02 / 4) ^ 4x6 = X

13,700 x (1 + 0.005) ^ 24 = X

13,700 x 1,005 ^ 24 = X

13,700 x 1.1271 = X

15,442.08 = X

Therefore, the balance after the 6 years of investment will be $ 15,442.08.