Posted by Anonymous on .
Find the ending balance in an account that opens with $6,000, earns 6.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)
P = Po(1+r)^n.
P = Principal bal. after 20 yrs.
Po = $6,000 = Initial deposit.
r = (6.5%/4)/100% = 0.01625 = Quarterly % rate expressed as a decimal.
n = 4Comp/yr * 20yrs. = 80 Compounding
Plug the calculated values into the given Eq.
P = $21,786.93.