Question

You deposit $5,000 in a savings account that pays 6.50 percent interest, compounded quarterly. How much will your account be worth in 10 years?

a. 7,924.75

b. 9,545.74

c. 8,411.31

d. 9,527.79

e. 8,541.46​

Answer 1

The correct answer is - d. 9,527.79.

Step-by-step explanation:

Given: P = 5000

r= 6.50 (comounded quaterly)

t 10

Formula:

A = P (1+r/4*100)^4t

Solution:

A = 5000(1+0.0650/4)^4*10

=5000 (1+0.1625)^4*10

= 5000 (1.01625)^4*10

= 5000* 1.90555

= 9527.79