Question

Matthew deposits $400 into an account that earns 7% interest compounded quarterly. What is the balance in his account after 10 years? (Round to the nearest dollar)​

Answer 1

9514 1404 393

Answer:

$801

Explanation:

Use the given values in the given formula.

P = 400, r = 0.07, n = 4, t = 10.

A = 400(1 +0.07/4)^(4·10) = 400(1.0175^40) ≈ 800.64

Matthew's account balance will be about $801 after 10 years.