Question

Suppose that when your friend was born, your friend's parents deposited $9000 in an account paying 6.9% interest compounded quarterly. What will the account balance be after 19 year?

Answer 1

$11799

Explanation:

The formula for Interest is I=(p)(r)(t)

I=Interest/The amount of money you got

P=Principal/Amount of money you put into the bank

R=Rate/Percentage divided by 100

T=Time in years/If in months then say 1/12

Then we can make the equation

I=9000 x (6.9 / 100) x 19

I=9000 x 0.069 x 19

I=621 x 19

I=11799

They will get $11799 in 19 years.