Isabelle invested $25,000 into an account that earns 3% annual interest compounded quarterly. If she makes no other deposits into the accou

Question

Isabelle invested $25,000 into an account that earns 3% annual interest compounded quarterly. If she makes no other deposits into the account, what will be the balance of her account in 20 years? Round to the nearest whole dollar.

$43451

$38451

$45451

$52451

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Nevaeh 3 days 2021-11-23T21:19:16+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-11-23T21:21:05+00:00

    Answer: $45451

    Step-by-step explanation:

    We would apply the formula for determining compound interest which is expressed as

    A = P(1+r/n)^nt

    Where

    A = total amount in the account at the end of t years

    r represents the interest rate.

    n represents the periodic interval at which it was compounded.

    P represents the principal or initial amount deposited

    From the information given,

    P = 25000

    r = 3% = 3/100 = 0.03

    n = 4 because it was compounded 4 times in a year.

    t = 20 years

    Therefore,

    A = 25000(1+0.03/4)^4 × 20

    A = 25000(1+0.0075)^80

    A = 25000(1.0075)^80

    A = $45451

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45:7+7-4:2-5:5*4+35:2 =? ( )