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What is the future value if $18733 is invested at 5.1% for 10 years, compounded quarterly

Sagot :

Linandrew41idn

Answer:

Step-by-step explanation:

The compound interest formula is [tex]P(1+r/n)^{nt}[/tex]

  • P: the initial amount of cash
  • r: interest rate
  • n: # of times that interest is compounded per time period
  • t: # of time periods

Known information:

  • P: 18733
  • r: 5.1% or 0.051
  • n: quarterly or 4
  • t: 10 yrs

Now let's set up the equation:

  Future amount: [tex]18733 (1+\frac{0.051}{4} )^{4*10}[/tex] [tex]=31,095.49[/tex]

Thus the future amount is $31.095.49.

Hope that helps!

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