Question

Felicia invested $25,000 into an account earning 3% annual interest compounded quarterly. she makes no other deposits into the account and does not withdraw any money. what is the balance of felicia's account in 9 years?

Answer 1

the answer is $32,716.13 i just took the test and got it right

Answer 2

Answer

Balance of Felicia's account in 9 years be $32717.5 .

Explanation :

Formula

$Amount = P (1+\frac{r}{4})^{4t}$

Where P is the principle , r is the rate of interest in the decimal form and t in the time in the years .

As given

Felicia invested $25,000 into an account earning 3% annual interest compounded quarterly for 9 years .

As

P = $25000

3% is written in the decimal form.

$= \frac{3}{100}$

= 0.03

t = 3 years

Putting all the values in the formula

$Amount = 25000 (1+\frac{0.03}{4})^{4\times 9}$

$Amount = 25000 (1+\frac{0.03}{4})^{36}$

$Amount = 25000 (1+0.0075)^{36}$

$Amount = 25000 (1.0075)^{36}$

$Amount = 25000\times 1.3087\ (Approx)$

$Amount = \ 32717.5$

Therefore the balance of Felicia's account in 9 years be $ 32717.5 .