Thursday
March 30, 2017

Post a New Question

Posted by on .

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 - ,

    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

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question