Problema Solution

a. Compound interest-An initial deposit of $10,000 earns 8% interest, compounded quarterly. How much will be in the account in 10 years?

Answer provided by our tutors

Amount A=P (1+r/n)nt

=10000(1+0.08/4)40

=10000*1.0840

=10000*21.7245

=217245

This will be the amount after 10 yrs