Question

Dominic invested $4,000 into an account that earns 3% interest compounded quarterly. How much money will be in the account after 20 years?

Answer 1

Answer:

$7272.18

Step-by-step explanation:

Principal, P = $4,000

Interest rate, r = 3% = 0.03

Period, t = 20 years

Number of times compounded in a year = 4

Amount , A = P( 1 + r/n)^tn

A = 4000( 1 + 0.03/4)^4*20

A = 4000( 1 + 0.0075) ^80

A =4000( 1.0075) ^80

A = 4000* 1.818

A = $7272.18