Step 1: Problem
Katie's saving up money to buy a car. Katie puts 10000.00 into an account that earns 8% interest, compounded quarterly. How much will she have in the account after 10 years?
Step 2: Concept
[tex]\begin{gathered} A=P(1+r)^t \\ A\text{ = Future amount} \\ P\text{ = Principal} \\ r\text{ = Rate} \\ t\text{ = Time } \end{gathered}[/tex]Step 3: Method
Given data
P = $10,000.00
r = 8% = 8/100 = 0.08
t = 10 x 3 = 30
[tex]\begin{gathered} A=P(1+r)^t \\ =10000(1+0.08)^{30} \\ =10000(1.08)^{30} \\ =\text{ 10000 }\times\text{ 10.06265} \\ =\text{ \$100,626.56} \end{gathered}[/tex]Step 4: Final answer
Amount she has in her account after 10 years = $100,626.56
