Question

Ian invested $90,000 in an account paying an interest rate of 2.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?

Answer 1

Answer:

A≈107902

Step-by-step explanation:

Answer 2

The $107,902 will be in account after 7 years if Ian invested $90,000 in an account paying an interest rate of 2.6% compounded quarterly

What is compound interest?

It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.

We can calculate the compound interest using the below formula:

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

Where A = Final amount

          P = Principal amount

          r  = annual rate of interest

          n = how many times interest is compounded per year

          t = How long the money is deposited or borrowed (in years)

We have:

p = $90,000

r = 2.6% = 0.026

n = 4

t = 7 years

$\rm A = 90,000(1+\dfrac{0.026}{4})^{4\times7}$

A = $107,901.71 ≈ $107,902

Thus, the $107,902 will be in account after 7 years if Ian invested $90,000 in an account paying an interest rate of 2.6% compounded quarterly.

Learn more about the compound interest here:

brainly.com/question/26457073

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