Question

10,000 is compounded quarterly at 12% interest for t years, what expression represents the amount of money after t years

Answer 1

Answer:  10,000(1.03)⁴ˣ  

Step-by-step explanation:

A = P(1 + $\frac{r}{n}$)ⁿˣ

A is the amount (new balance):   unknown

P is the principal (amount you started with):   10,000

r is the interest rate: 12% = .12

n is the number of times per year it is compounded: quarterly = 4

x is the number of years: x

A = 10,000(1 + $\frac{.12}{4}$)⁴ˣ

   = 10,000(1 + .03)⁴ˣ

   = 10,000(1.03)⁴ˣ