Question

$7,000 is invested at a rate of 3% compounded quarterly. Find the balance after 10 years.

Write a compound interest equation to model the situation. Then find the balance.

Answer 1

The standard compound interest formula is where:

P is the principal amount

r is the interest rate (typically as a percentage)

t is the time

n is the times compounded per unit of time

So,

1)

2)

3)

Explanation: