Alice opened a savings account and deposited $800.00 as principal. The account earns 10% interest, compounded quarterly. What is the balance after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Question
Alice opened a savings account and deposited $800.00 as principal. The account earns 10% interest, compounded quarterly. What is the balance after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Solution
To solve this problem, we need to plug the given values into the formula for compound interest.
Here are the values we know:
- P (principal) = $800.00
- r (interest rate) = 10% = 0.10 (as a decimal)
- n (number of times per year that the interest is compounded) = 4 (quarterly means 4 times a year)
- t (time in years) = 10 years
Now we can plug these values into the formula:
A = P(1 + r/n)^(nt)
A = 800(1 + 0.10/4)^(4*10)
First, calculate the value inside the parentheses:
1 + 0.10/4 = 1.025
Then raise this value to the power of 4*10:
(1.025)^(4*10) = 2.68564
Finally, multiply this by the principal:
800 * 2.68564 = $2148.51
So, the balance in Alice's savings account after 10 years will be approximately $2148.51, rounded to the nearest cent.
Similar Questions
Trent opened a savings account and deposited $400.00 as principal. The account earns 10% interest, compounded monthly. What is the balance after 3 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
orWatch a videoRhianna puts $1,000.00 into an account to use for school expenses. The account earns 5% interest, compounded annually. How much will be in the account after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Max and Danielle deposit $500.00 into a savings account which earns 1% interest compounded quarterly. They want to use the money in the account to go on a trip in 3 years. How much will they be able to spend?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.$
Jasmine puts $500.00 into an account to use for school expenses. The account earns 7% interest, compounded annually. How much will be in the account after 10 years?Use the formula A=P1+rnnt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.Round your answer to the nearest cent.
Complete the table to determine the balance A for $10,000 invested at rate r = 4% for t years, compounded continuously. (Round your answers to two decimal places.)
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.