Question

Balance on a 20,000 deposit earning 3.5% compounded quarterly after 10 years

Answer 1

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 20000\\ r=rate\to 3.5\%\to \frac{3.5}{100}\dotfill &0.035\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &10 \end{cases}$

$A=20000\left(1+\frac{0.035}{4}\right)^{4\cdot 10}\implies A=20000(1.00875)^{40}\implies A\approx 28338.18$