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

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