Math Question Help Needed

Accounting
Tutor: None Selected Time limit: 1 Day

If $100 is placed in an account that earns a nominal 4% compounded quarterly, what will it be worth in 5 years?

Jun 5th, 2015

Dear your question is under process and shall be available to you in next few minutes.


Best of Luck
Jun 5th, 2015

Using the compound interest formula, we have that
P = $100, r= 4/100= 0.04, n=4, t=5 , therefore,

A is deposit value in future 

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

A = 100 (1+ 0.04/4)^(4)(5)

A = 100 (1.01)^20

A = 100 (1.22)

A = $122 approximately

Jun 5th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jun 5th, 2015
...
Jun 5th, 2015
May 29th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer