Question

Suppose, That your friend was born , your friends parents deposited $4000 in an account paying 5.5% interest compounded quarterly.What will the account balance be after 14 years ?

Answer 1

$\bf \qquad \textit{Compound Interest Earned Amount}\\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\ 4,000\\ r=rate\to 5.5\%\to \frac{5.5}{100}\to &0.055\\\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{compounds quarterly, every}\\ \textit{quarter, thus 4 times} \end{array}\to &4\\\\ t=years\to &14 \end{cases}$