Dave deposits $400.00 each month into an annuity with a 3.25% interest rate compounded quarterly. What is the account balance after 10 years?

Question

Mathematics

Briana Cabrera

20 May, 14:21

Dave deposits $400.00 each month into an annuity with a 3.25% interest rate compounded quarterly. What is the account balance after 10 years?

+4

Answers (2)

Know the Answer?

Rachael Bowman · Answer 1

I think it's 4,003.25 sorry if I got it wrong

Raegan Frederick · Answer 2

A = $552.89

Step-by-step explanation:

Use the compound amount formula A = P (1 + r/n) ^ (nt). n represents the number of times the interest is compounded per year and r is the interest rate as a decimal fraction.

Here,

A = $400 (1 + 0.0325/4) ^ (4*10)

= $400 (1.3822)

A = $552.89