You invest an initial $100 in an account that has an annual interest rate of 3%, compounded quarterly. How much money will you have in the account after 20 years? Round your answer to the nearest whole number.

Question

whpalmer4 · Answer

Do you know the formula for compound interest?

whpalmer4 · Answer

$$FV = PV(1+\frac{r}{n})^{nt}$$where $FV$ is the future value, $PV$ is the present value, $r$ is the annual interest rate, expressed as a decimal, $n$ is the number of compounding periods per year, and $t$ is the number of years

wolf1728 · Answer

Total = $100 * (1 + .03/4)^4*20 Total = $100 * 1.8180439804 Total = $181.80 and a calculator to check your answer is here: http://1728.org/compint.htm