Question

If you were to deposit $12,000 and the bank paid you 6% interest compounded quarterly, what would the maturity value of your deposit be at the end of nine years?

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{compounded amount}\\ P=\textit{original amount deposited}\to &\ 12000\\ r=rate\to6\%\to \frac{6}{100}\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, meaning} \end{array}\to &4\\ t=years\to &9 \end{cases} \\\\\\ A=12000\left(1+\frac{0.06}{4}\right)^{4\cdot 9}$