40.5k views
0 votes
How much compound interest will $50,000 have earned in 10 years at

6.4% annual interest compounded quarterly?

User Hithyshi
by
3.3k points

1 Answer

4 votes

Answer:

Explanation:

To find the compound interest earned on $50,000 in 10 years at 6.4% annual interest compounded quarterly, we can use the formula:

compound interest = principal * (1 + rate/n)^(n*t) - principal

where "principal" is the initial amount of money, "rate" is the annual interest rate, "n" is the number of times the interest is compounded per year, and "t" is the number of years.

Plugging in the given values, we get:

compound interest = $50,000 * (1 + 0.064/4)^(4*10) - $50,000

= $50,000 * (1.016)^40 - $50,000

= $50,000 * 2.6335 - $50,000

= $78,167.50 - $50,000

= $28,167.50

Therefore, the compound interest earned on $50,000 in 10 years at 6.4% annual interest compounded quarterly is $28,167.50.

User Smudge
by
3.6k points