Amelia plans to open a compound interest savings account with a $22,000 deposit at a bank with an annual interest rate of 5.25%.
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Answer:
<h2>$9441</h2>Step-by-step explanation:
The interest will be compounded quarterly every year, it means in each year the interest will be calculated 4 times.
In 6 years in total = 24 times the interest will be calculated.
The yearly interest rate is 4%. Hence, the quaterly interest rate will be = 1%.
Hence, after calculating 24 times, the amount will be turned to = 44440.7127≅ 44441.
Hence, the total compound interest is $(44441 - 35000) = $9441