Question

your friend deposits $9500 in an investment account that earns 2.1% annual interest. what is the balance after 11 years when the interest is compounded quarterly?

Answer 1

The answer is "$ 11,961.43"

Explanation:

Given values:

P = $ 9500

r= 2.1 %

time (t)= 11 year

total quarterly year =4

Formula:

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

quarterly time =
`4 * 11`

`= 44`

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

`A = 9500 ( 1+ (0.021)/(4))^(44)\\\\A = 9500((4+ 0.021)/(4) )^(44) \\\\A = 9500((4.021)/(4) )^(44) \\\\A= 9500 (1.00525)^(44)\\\\A= 9500(1.25909819)\\\\A= 11,961. 43\\`