Question

You deposit $4200 in a savings account that has a rate of 4%. The interest is compounded quarterly. How much money will you have after 10 years

Answer 1

Answer:

$\ 6,253.23$  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=10\ years\\ P=\ 4,200\\ r=0.04\\n=4$  

substitute in the formula above  

$A=\ 4,200(1+\frac{0.04}{4})^{4*10}=\ 6,253.23$