Question

Kyle invested $15,000 in a savings account. If the annual interest rate is 5%, how much will be in the account in 10 years for quarterly compounding?

Round your answer to the nearest cent.
Do NOT round until you calculate the final answer

Answer 1

The correct answer is 24654.29

Explanation:

Identify the values of each variable in the formulas. Remember to express the percent as a decimal.

For quarterly compounding, n=4. There are 4 quarters in a year.

Substitute the values in the formula.

A=15,000(1+0.054)4⋅10

Compute the amount. Be careful to consider the order of operations as you enter the expression into your calculator.

A=$24,654.29