SOLUTION: You invest an initial $100 in an account that has an annual interest rate of 3%, compounded quarterly. How much money will you have in the account after 20 years? Round your answer
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Question 1065792: You invest an initial $100 in an account that has an annual interest rate of 3%, compounded quarterly. How much money will you have in the account after 20 years? Round your answer to the nearest whole number Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! T=100(1+(.03/4))^80, for there are 80 separate compoundings.
Round only at the end
100*(1.0075)^80=$181.80
Rough check, rule of 70 says money doubles in 70/3 years or about 23 years. This is close to doubling but not quite, as it should be.
