Question

Austin invested $11,000 in an account paying an interest rate of 5.7% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 6 years?

Answer 1

Answer:

15448

Explanation:

Compounded Quarterly:

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

A=P(1+

n

r

​

)

nt

Compound interest formula

P=11000\hspace{35px}r=0.057\hspace{35px}t=6\hspace{35px}n=4

P=11000r=0.057t=6n=4

Given values

A=11000\left(1+\frac{0.057}{4}\right)^{4(6)}

A=11000(1+

4

0.057

​

)

4(6)

Plug in values

A=11000(1.01425)^{24}

A=11000(1.01425)

24

Simplify

A=15448.0290759

A=15448.0290759

Use calculator

Answer 2

Answer:

15448

Explanation:

A=11000(1.01425)^{24}

A=11000(1.01425)  

24