Answer:
[tex]A=\$14,555.17[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=10\ years\\ P=\$8,000\\ r=6\%=6/100=0.06\\n=12[/tex]
substitute in the formula above
[tex]A=8,000(1+\frac{0.06}{12})^{12*10}[/tex]
[tex]A=8,000(1.005)^{120}[/tex]
[tex]A=\$14,555.17[/tex]
Answer:
14,512.15
Step-by-step explanation:
Identify the values of each variable in the formulas. Remember to express the percent as a decimal.
APrt=?=$8,000=0.06=10
For quarterly compounding, n=4. There are 4 quarters in a year.
A=P(1+rn)nt
Substitute the values in the formula.
A=8,000(1+0.064)4⋅10
Compute the amount. Be careful to consider the order of operations as you enter the expression into your calculator.
A=$14,512.15
