Anisha invested $8,000 in an account that earns 10% interest How much money will she have in 15 years of the interest is compound quarterly

Accepted Solution

Answer:A = $35,198.32Step-by-step explanation:Use the formula to calculate compound interest:A = P(1 + i)ⁿ"A" for total amount after the time period"P" for principal, or starting money"i" for the interest rate in a compounding periodTo calculate "i": i = r / c"n" for the number of compounding periodsTo calculate "n": n = tcSo, we can combine the formulas into:[tex]A = P(1+\frac{r}{c})^{tc}[/tex]"c" is the compounding periods in a year. (quarterly = 4)We know:P = 8000r = 10% / 100 = 0.1t = 15c = 4Substitute the information in the formula.[tex]A = P(1+\frac{r}{c})^{tc}[/tex][tex]A = 8000(1+\frac{0.1}{4})^{15*4}[/tex]      Solve "i" and "n"[tex]A = 8000(1+0.025)^{60}[/tex]        Solve inside the brackets[tex]A = 8000(1.025)^{60}[/tex]         Do the exponent before multiplying by 8000A = 35198.318             Exact answerA ≈ 35198.32              Round to two decimal places for moneyTherefore she will have $35,198.32 after 15 years.