38.5k views
1 vote
Find the accumulated value when $20,000.00 is invested for 10 years at 4.5% interest rate compounded quarterly.

User Detect
by
8.6k points

1 Answer

4 votes

To find the final amount, we just need to use those values in the compound interest formula, which is


A=P(1+(r)/(n)_{})^(nt)

Where A represents the final amount, P the principal(starting value), r the rate(written in decimals), n the number of times the interest is compounded, and t is the time.

We have

P = 20,000

r = 4.5% = 0.045

n = 4 (it is compounded quarterly)

t = 10

Evaluating those values in our equation, we have


A=20000(1+(0.045)/(4))^(40)=31287.5373078\approx31287.54

The accumulated value will be $31287.54.

User Fabien Henon
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories