Question

$2000 invested at an interest of 11% compounded quarterly for 5 years.

Answer 1

$3,440.86

Explanation:

Lets use the compound interest formula provided to solve this:

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

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 11% into its decimal form:

11% ->
`(11)/(100)` -> 0.11

Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:

`A=2,000(1+(0.11)/(4))^(4(5))`

`A=3,440.86`

The balance will be $3,440.86 after 5 years.