Question

⦁ A sum of $22,000 is invested in a savings account which pays interest at the rate of 7 percent per year compounded quarterly. If the amount is kept on deposit for 10 years, what will the compound amount equal? How much interest will be earned during the 10 Years

Answer 1

Answer:

Compounded amount = $44,035.14

Interest earned =  $22,035.14

Step-by-step explanation:

Amount after t years = 22000(1 + 0.07/4)^4t

So after 10 years it is 22000(1 + 0.07/4)^40

= $44,035.14

and interest earned = $22,035.14