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Use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of ​$15 comma 000 is deposited in an account at an annual interest rate of 3​% and the interest is compounded quarterly.
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Part 1
The amount after 10 years will be ​$
  
enter your response here.
​(Round to the nearest cent as​ needed.)



Answer :

sqdancefan

Answer:

  $20,225.23

Step-by-step explanation:

You want the future value of a $15,000 deposit that earns 3% interest compounded quarterly for 10 years.

Compound interest

The account value is given by the formula ...

  [tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]

where principal P earns interest at rate r compounded n times per year for t years.

Here, this becomes ...

  [tex]A=15000(1+\dfrac{0.03}{4})^{4\cdot10}=15000\cdot1.0075^{40}\approx20225.229[/tex]

The amount after 10 years will be $20,225.23.

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