Homework Help: accounting

Posted by Yvonne on Sunday, March 18, 2012 at 6:10pm.

What is the ending balance in an account that opebs with $7000, earns 7.5% interest compound quarterly, and is held for 20 years.

accounting - Henry, Monday, March 19, 2012 at 11:43pm
Pt = Po(1+r)^n.

r=(7.5%/4) / 100%=0.01875 = Quarterly % rate expressed as a decimal.

n = 4Comp./yr * 20yrs = 80 Compounding
periods.

Pt = 7000(1.01875)^80 = $30,939.11

Answer this Question

Related Questions

accounting - Find the ending balance in an account that opens with $9,000, earns...
Math - Find the ending balance in an account that opens with $5,000, earns 7.5% ...
math - Find the ending balance in an account that opens with $5,000, earns 2.5% ...
math - Find the ending balance in an account that opens with $6,000, earns 6.5% ...
ALGEBRA - Find the ending balance in an account that opens with $5,000, earns 7....
ALGEBRA - Find the ending balance in an account that opens with $5,000, earns 7....
ALGEBRA - Find the ending balance in an account that opens with $5,000, earns 7....
algebra - Find the ending balance in an account that opens with $6,000, earns 4....
ALGEBRA - Find the ending balance in an account that opens with $5,000, earns 7....
Math - Find the ending balance in a account that opens with 6,480, earns 8.5% ...

For Further Reading

First Name:
School Subject:
Answer: