Question

Meg invested $16,000 in a savings account. If the annual interest rate is 6%, how much will be in the account in 5 years for quarterly compounding? Round your answer to two decimal places.
CORRECT ANSWER IS: 21549.68

Answer 1

Answer:

In 5 years the account will be $ 21,549.68.

Step-by-step explanation:

Given that Meg invested $ 16,000 in a savings account, if the annual interest rate is 6%, to determine how much will be in the account in 5 years for quarterly compounding, the following calculation must be performed:

16,000 x (1 + 0.06 / 4) ^ 5x4 = X

16,000 x 1,015 ^ 20 = X

16,000 x 1.34685500 = X

21,549.68 = X

Therefore, in 5 years the account will be $ 21,549.68.