Question

$5000 is compounded quartely at a rate of 10% . find the total amount in the componded interest account at the end of 20 years. the componded interest factor is 7.20957

Answer 1

Answer: what he said^

Step-by-step explanation:

Answer 2

$A = P (1 + \frac{r}{n} )^{(nt)}$ is formula for compounded quarterly interest rate.

Where P = 5000, r = 10% = .10, n = 4 (since its compounded quarterly), and t = 20

Now we plug all variables into the equation.


$A = 5000 (1 + \frac{.10}{4} )^{(4*20)} = 36047.839$

The answer is $36,047.84