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11 votes
11 votes
Complete the problems. (From Example 2)

1. How much compound interest will $50,000 have earned in 10 years at 6.4% annual interest compounded
quarterly?

User Vatsal Parsaniya
by
2.4k points

1 Answer

14 votes
14 votes

Answer:

Compound interest is $7,037,339.2

Explanation:


{ \boxed{ \bf{A=P(1+ (r)/(100) ) {}^(n) }}}

substitute:


{ \sf{ = 50000(1 + (6.4)/(100)) {}^(10) }} \\ \\ = { \sf{50000(1.64) {}^(10) }} \\ \\ { = \sf{7037339.2}}

User Travis Kaufman
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3.0k points