Tara deposits 5,000 in a certificate of deposit. The annual interest rate is 7% , and the interest will be compounded quarterly. How much will the certificate be worth in 10 years?

Solution

Tara deposits 5, 000 in a certificate of deposit. The annual interest rate is 7% , and the interest will be compounded quarterly. How much will the certificate be worth in 10 years?

Solution

Amount : 10007.99

étapes des solutions

Translate the problem into an equation:

A = 5000 (1 + \frac{0.07}{4})^{4 \cdot 10}

5000 (1 + \frac{0.07}{4})^{4 \cdot 10} = 10007.98671 \dots

Arrondir à hundredth la plus proche:

10007.99

Amount : 10007.99

Exemples populaires

The circonférence of a circle is 4pipi ft. Find its diameter, in feet Calculate the amount of interest earned in 8 years on 13,000 deposited in an account paying 10% annual interest, compounded quarterly.the number a increased by twelve five less than a number is at most 11 The diameter of a circle is 10 m. Find the circonférence