Christina opened a savings account and deposited 5,000.00 as principal. The account earns 15% interest, compounded quarterly. What is the balance after 10 years?

Solution

Christina opened a savings account and deposited 5, 000.00 as principal. The account earns 15% interest, compounded quarterly. What is the balance after 10 years?

Solution

Amount : 21801.89

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.15}{4})^{4 \cdot 10}

5000 (1 + \frac{0.15}{4})^{4 \cdot 10} = 21801.89379 \dots

Round to the nearest hundredth:

21801.89

Amount : 21801.89

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