Question

how much money will you have in 10 years if you invest $12,000 at a 3.3% annual rate of interest compounded quarterly?

Answer 1

Answer:

The amount is $16718.7 and the interest is $4718.7.

Step-by-step explanation:

STEP 1: To find amount we use formula:

A=P(1+rn)n⋅t

A = total amount

P = principal or amount of money deposited,

r = annual interest rate

n = number of times compounded per year

t = time in years

In this example we have

P=$12000 , r=3.33% , n=4 and t=10 years

After plugging the given information we have

AAAA=12000(1+0.03334)4⋅10=12000⋅1.00832540=12000⋅1.393225=16718.7

STEP 2: To find interest we use formula A=P+I, since A=16718.7 and P = 12000 we have:

A16718.7II=P+I=12000+I=16718.7−12000=4718.7