Question

Suppose that when your friend was​ born, your​ friend's parents deposited ​$2000 in an account paying

4.9​% interest compounded
quarterly. What will the account balance be after
15 ​years?

Answer 1

$4152.38

Explanation:

The formula for compound-interest is given as
`A=P(1+(r)/(n) )^(nt)`, where P is the principal (starting) amount, r is the interest rate as a decimal, n is the number of compoundings occuring per year, and t is the time expressed in years. Now we solve...

`A=2000(1+(0.049)/(4))^(4*15)`

A = $4152.38