Suppose that when your friend was born, your friend's parents deposited $5000 in an account paying 6.1% interest compounded quarterly. What will the account balance be after 13 years?
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Part 1
The balance after 13 years will be $
enter your response here.
(Round to the nearest cent as needed.)
To calculate the account balance after 13 years, we can use the formula for compound interest:
\[A = P \left(1 + \frac{r}{n}\right)^{nt}\]
where:
A = the account balance after t years
P = the principal amount (initial deposit) = $5000
r = annual interest rate = 6.1% = 0.061
n = number of times the interest is compounded per year = 4 (quarterly compounding)
t = number of years = 13
Plugging in the values, we have:
\[A = 5000 \left(1 + \frac{0.061}{4}\right)^{4 \cdot 13}\]
Calculating this expression, we find that the account balance after 13 years will be approximately $10,145.03.
Suppose that when your friend was born, your friend's parents deposited $5000 in an account paying 6.1% interest compounded quarterly. What will the account balance be after 13 years?
Question content area bottom
Part 1
The balance after 13 years will be $
enter your response here.
(Round to the nearest cent as needed.)