Question

) If you invest $2500 in an account that pays 12% interest, compounded quarterly, how much would you

have at the end of 17 years?

Answer 1

18658.27

Explanation:

Answer 2

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$2500\\ r=rate\to 12\%\to (12)/(100)\dotfill &0.12\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &17 \end{cases} \\\\\\ A=2500\left(1+(0.12)/(4)\right)^(4\cdot 17)\implies A=2500(1.03)^(68) \implies A \approx 18658.27`