1. Determine the amount of money you will have if deposit $15,000 compounded quarterly for 5 years at 6% annual interest. help?
just use your formula:
15000(1 + .06/4)^(4*5)
To determine the amount of money you will have after 5 years with quarterly compounding at an annual interest rate of 6%, you can use the formula for compound interest:
A = P(1 + (r/n))^(n*t)
Where:
A = the future value of the investment
P = the initial deposit amount
r = the annual interest rate (as a decimal)
n = the number of compounding periods per year
t = the number of years
In this case:
P = $15,000
r = 6% or 0.06 (as a decimal)
n = 4 (quarterly compounding)
t = 5 years
Plugging in the values into the formula:
A = $15,000(1 + (0.06/4))^(4*5)
Calculating the values in parentheses first:
A = $15,000(1 + 0.015)^(20)
Simplifying:
A = $15,000(1.015)^(20)
Calculating (1.015) raised to the power of 20:
A = $15,000(1.349858807)
Calculating the final amount:
A ≈ $20,247.88
Therefore, after 5 years with quarterly compounding at a 6% annual interest rate, you would have approximately $20,247.88.
To determine the amount of money you will have after 5 years with quarterly compounding at a 6% annual interest rate, you can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the future value of the investment
P = the principal amount (the initial deposit of $15,000)
r = the annual interest rate (6% or 0.06 as a decimal)
n = the number of times interest is compounded per year (quarterly, so 4)
t = the number of years the money is invested (5)
Now, let's calculate it step by step:
First, convert the percentage interest rate to a decimal: 6% = 0.06
Next, substitute the values into the compound interest formula:
A = 15000(1 + 0.06/4)^(4*5)
Now simplify the expression inside the parentheses:
A = 15000(1 + 0.015)^20
Calculate the value inside the parentheses:
A = 15000(1.015)^20
Raise 1.015 to the power of 20:
A ≈ 15000(1.34800817)
Multiply that by the principal amount:
A ≈ $20,220.12
Therefore, after 5 years with quarterly compounding at a 6% annual interest rate, you will have approximately $20,220.12.