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Mathematics
hhanan:

11. You invest an initial $300 in an account that has an annual interest rate of 5%, compounded quarterly. How much money will you have in the account after 10 years? Round your answer to the nearest whole number.

lilaspie7:

I remember doing a problem like this but I forget. Its been a long time. Wish I could help.

jhonyy9:

so like a first step you need calcule the 5% of $300 equal how many ?

jhonyy9:

and hope you know what mean this ,,compounded quarterly" - yes ?

hhanan:

15

jhonyy9:

what is this 15 ?

hhanan:

5% of $300

XxAngelGirlxX:

First, convert R percent to r a decimal r = R/100 r = 5%/100 r = 0.05 per year, Then, solve our equation for A A = P(1 + r/n)nt A = 300.00(1 + 0.0125/4)(4)(10) A = $ 493.09 Summary: The total amount accrued, principal plus interest, from compound interest on an original principal of $ 300.00 at a rate of 5% per year compounded 4 times per year over 10 years is $ 493.09.

jhonyy9:

yes - so compounded this quarterly what mean ?

jhonyy9:

so above you get a direct but explained answer

hhanan:

ty

jhonyy9:

hope you can understanding it

jhonyy9:

np yw

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