Question

Suppose that when your friend was born, your friend’s parents deposited $2000 in an account paying 4.5% interest compounded quarterly. What will the account balance be after 18 years?

Answer 1

so if 1 year = 4.5%

18 years = 4.5× 18 = 81%

so the total money after 18 yrs would be the 81% of 2000$ which is 2000/100×81= 1620

then 2000$-1620 $ = 380$ left at totally