Question

$2000 invested at an interest of 11% compounded quarterly for 5 years.

Answer 1

Answer:

$3,440.86

Step-by-step explanation:

Lets use the compound interest formula provided to solve this:

$A=P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 11% into its decimal form:

11% -> $\frac{11}{100}$ -> 0.11

Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:

$A=2,000(1+\frac{0.11}{4})^{4(5)}$

$A=3,440.86$

The balance will be $3,440.86 after 5 years.