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use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of $10,000 is deposited in an account at an annual rate of 3% and the interest is compounded quarterly. The amount after ten years will be $_______ (round to the nearest cent as needed). A = P ( 1 + r/m) ^ n

Respuesta :

Given:

P=$10000 : m=4 : r=0.03 : n=40

[tex]A=P(1+\frac{r}{m})^n[/tex][tex]A=10000(1+\frac{0.03}{4})^{40}[/tex][tex]A=10000(1.0075)^{40}[/tex][tex]A=10000(1.3483)[/tex][tex]A=\text{ \$13483}[/tex][tex]1\text{ \$= 100 cent}[/tex][tex]A=13483\times100[/tex][tex]A=\text{ 1348300 cent}[/tex]

Therefore,The amount after ten years will be 1348300 cent.

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