Mary deposited $5,600 in an account, which compounded 1.9 percent quarterly, and left it there for 10 years. What was the amount in the account at the end of 10 years?
The formula for compounded quarterly interest is: [tex]A=S(1+ \frac{r}{n} )^{n*t}[/tex]
S is the initial amount We are adding one because it is an increase of money. r is the rate in decimal n is how often money is added during one year t is the time in years
Now we plug in variables into the equation.
[tex]A=5600(1+ \frac{0.019}{4} )^{4*10}[/tex]
A = 6768.75
The answer is $6768.75 would be the amount of money in the account at the end of 10 years.
