Question

What is the final amount of $70.00 that is put into a savings account with 16% interest rate for 25 years, if the interest is compounded 4 times per year?

Answer 1

Here is the compound interest formula: \[\Large A = P(1 + \frac{ r }{ n })^{nt}\]A = Amount at maturity = ?
P = Principal Amount = $70
r = Annual interest rate in decimal = 16% = 0.16
n = compounding period (compounded how many times a year) = 4
t = years invested = 25