principal: $750. annual interest rate: 10%. # of times compounded annually: 4. time: 10 years. what is the final amount
To find the final amount, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal (initial amount)
r = annual interest rate (as a decimal)
n = number of times compounded per year
t = time in years
Given:
P = $750
r = 10% = 0.10 (as a decimal)
n = 4
t = 10 years
Substituting the values into the formula:
A = 750(1 + 0.10/4)^(4*10)
A = 750(1.025)^(40)
Using a calculator to evaluate (1.025)^(40), we get:
A ≈ 750(1.485946)
A ≈ $1,114.46
Therefore, the final amount is approximately $1,114.46.