Question

your friend deposits $9500 in an investment account that earns 2.1% annual interest. what is the balance after 11 years when the interest is compounded quarterly?

Answer 1

Answer:

The answer is "$ 11,961.43"

Step-by-step explanation:

Given values:

P =  $ 9500

r= 2.1 %

time (t)= 11 year

total quarterly year =4

Formula:

$A= P (1+\frac{r}{n})^{nt}$

quarterly time = $4 \times 11$

                         $= 44$

$A= P (1+\frac{r}{n})^{nt}$

$A = 9500 ( 1+ \frac{0.021}{4})^{44}\\\\A = 9500(\frac{4+ 0.021}{4} )^{44} \\\\A = 9500(\frac{4.021}{4} )^{44} \\\\A= 9500 (1.00525)^{44}\\\\A= 9500(1.25909819)\\\\A= 11,961. 43$