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You have a $9000 bond that earns 3% interest compounded quarterly. How much is the bond word at 6 years?

User Bakkay
by
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1 Answer

4 votes

Answer:

$10,667.66

Explanation:

The formula for calculating the compound interest is expressed as:

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

P is the principal = $9000

r is the rate = 3%

time t = 6years

n = 1/4

Substitute

A = 9000(1+0.03/(1/4))^6/4

A = 9000(1+0.03(4))^1.5

A = 9000(1+0.12)^1.5

A = 9000(1.12)^1.5

A = 9000(1.1853)

A = 10,667.67

Hence the amount after 6 years is $10,667.66

User Alpav
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