(Consumer Math) You make an initial investment of $25 at a 3.25% APR that is compounded quarterly for 10 years. You make no other contributions. How much is the interest at the end of 10 years?

Question

mathstudent55 · Answer

Use the compound interest formula for future value.

anonymous · Answer

Ahh thank you for answering @mathstudent55 have you done these problems before? I just looked up the compound interest formula, is this the right one? A=P(1+r/n)^n*t

mathstudent55 · Answer

Yes, that's it.
$A = P\left(1 + \dfrac{r}{n}\right)^{nt} $
Use P = principal amount = $25
r = interest rate as a decimal = 0.0325
n = number of times interest is compounded in a year = 4
t = time in years = 10

anonymous · Answer

Thank you Honorary Professor of Mathematics, medal for you :)