Problema Solution
suppose that 9,000 is invested at 3.5% compounded quarterly. Find the total amount of this investment after 10 years. Round to the nearest cent
Answer provided by our tutors
P = $9,000 the principal
t = 10 years
r = 0.035 or 3.5% annual rate
m = 4 compounding period per year
i = 0.035/4 interest rate per period
n = 10*4 = 40 total number of compounding periods
A = future value
A = P(1 + i)^n
A = 9000(1 + 0.035/4)^40
A = $12,752.18
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the total amount after 10 years will be $12,752.18.