SOLUTION: Latoya deposited $4000 into an account with 2.3% interest, compounded quarterly. Assuming that no withdrawals are made, how much will she have in the account after 10 years?
Question 1201806: Latoya deposited $4000 into an account with 2.3% interest, compounded quarterly. Assuming that no withdrawals are made, how much will she have in the account after 10 years?
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Latoya deposited $4000 into an account with 2.3% interest, compounded quarterly.
Assuming that no withdrawals are made, how much will she have in the account after 10 years?
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Formula for discretely compounded account is F =
where F is the future value
P is the principal value (one-time original deposit)
r is the interest rate per time period (per quarter, in this case)
n is the number of time periods (quarters, in this case)
Your time periods are quarters.
P = 4000 dollars.
r = 0.023/4 in decimal form.
n = 10 years * 4 quarters = 40 quarters (time periods).
Formula becomes F = = 5031.08 dollars. ANSWER
