Homework Help: ALGEBRA

Posted by Danny on Sunday, May 27, 2012 at 11:13am.

Find the ending balance in an account that opens with $5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)

ALGEBRA - Henry, Monday, May 28, 2012 at 4:36pm
P = Po(1+r)^n.

Po = $5,000.

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

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

Plug the above values into the given Eq
and get $22,099.26.

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