You deposit $15,000 in a savings account at a bank that has a rate of 6% compounded quarterly. find the amount of money in the account after 6 years.
Mathematics · High School · Sun Jan 24 2021
Answered on
Given:
Principal Amount ( P ) = $15,000
Interes Rate ( r ) = 6% or 0.06 ( divide by 100)
Term ( t ) = 6
Compounded continuously ( n ) = 4
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = Future value
Solution:
Substitute the given values of P, r, n and t to the formula for the compound interest.
A = $15,000( 1 + 0.06/4)^(4)(6)
A = $15,000( 1 + 0.015)^24
A = $15,000( 1.015)^24
A = $15,000( 1.429502812 )
A = $21,442.54
Final answer:
A =$ 21,442.54