Question

Jamie deposits $10,000 in an account earning 3% interest, compounded quarterly. How much will the account balance be in 10 years?

$13,483.48

$22,879.28

$12,327.12

$14,724.14

Answer 1

Hi Friend,

Asper the Given question we need to find total earning at the year of 10 if a person invest in at 3% Interest

But there is a conusion regarding the given interest rate is for Annually or quorterly

So we need to come to an assumption either as Annually or Quorterly. Now I considering the same as Annual Rate.

Please see the below calculation.

Investing amount

=

$ 10,000.00

Interest rate

=

3% PER ANNUM

Compounding period

=

Quorterly

Please use the below Equation to compound

PV=

Investment amount

=

PV(1+(r/m))^mt

r=

Annual rate of interest

m=

No of compunding in a year

t=

No of years

=

10000(1+(0.03/4))^4*10

=

₹ 13,483.49