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Meg invested $16,000 in a savings account. If the annual interest rate is 6%, how much will be in the account in 5 years for quarterly compounding? Round your answer to two decimal places.

CORRECT ANSWER IS: 21549.68

2 Answers

5 votes

Answer:

Explanation:

A+?
P=$16,000
r=0.06
t=5

A=P(1+r/n)∧ nt

A=16,000(1+0.06/12)∧12⋅5


A=$21,581.60

User Koraxis
by
3.7k points
4 votes

Answer:

In 5 years the account will be $ 21,549.68.

Explanation:

Given that Meg invested $ 16,000 in a savings account, if the annual interest rate is 6%, to determine how much will be in the account in 5 years for quarterly compounding, the following calculation must be performed:

16,000 x (1 + 0.06 / 4) ^ 5x4 = X

16,000 x 1,015 ^ 20 = X

16,000 x 1.34685500 = X

21,549.68 = X

Therefore, in 5 years the account will be $ 21,549.68.

User Beri
by
3.4k points