Question

Mickey has $10,000 in his bank account currently. He has an interest rate of 8% compounded quarterly for 5 years. What is his total investment after this time period?

Answer 1

The formula for compounding investments is as follows:
$a = {p(1 + \frac{r}{n}})^{nt}$
a = end amount
p= principle amount (what is invested)
r= interest rate (as a decimal)
n = number of times the investment is compounded yearly
t = time

For this particular investment the end amount would be $14859.47