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.
I remember doing a problem like this but I forget. Its been a long time. Wish I could help.
so like a first step you need calcule the 5% of $300 equal how many ?
and hope you know what mean this ,,compounded quarterly" - yes ?
what is this 15 ?
5% of $300
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.
yes - so compounded this quarterly what mean ?
so above you get a direct but explained answer
hope you can understanding it
Join our real-time social learning platform and learn together with your friends!