Question

Henry invested $59,000 in an account paying an interest rate of 2% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 20 years?

Answer 1

A≈87929.98

Explanation:

Answer 2

9514 1404 393

Answer:

$87,929.98

Explanation:

The future value formula can be used for this:

FV = P(1 +r/n)^(nt)

where principal P is invested at annual rate r for t years, compounded n times per year. With your numbers, we have ...

FV = $59,000(1 +.02/4)^(4·20) ≈ $87,929.98

Henry will have $87,929.98 after 20 years.