Question

What is the final amount of $70.00 that is put into a savings account with 16% interest rate for 25 years, if the interest is compounded 4 times per year?

Answer 1

here is the compound interest formula: A=P(1+rn)nt
A= amount at maturity P = principal amount = $70
r = Annual interest rate in decimal = 16% = 0.16
n = compounding period (compounded how many times a year) = 4
t = years invested = 25