Question

Before deciding to deposit money at the credit union, Heather checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 9.8% compounded quarterly. If Heather had deposited $1,700 at her local bank, how much would she have had in her account after 13 years?

Answer 1

Answer:

Shw would have accumulated $5,985.09

Explanation:

Giving the following information:

The bank was paying a nominal interest rate of 9.8% compounded quarterly.

Heather deposit $1,700 at her local bank.

Number of years= 13 years

First, we need to calculate the quarterly interest rate:

i= 0.098/4= 0.0245

Now, using the following formula we can calculate the final value:

FV= PV*(1+i)^n

FV= 1,700*(1+0.0245)^(13*4)= $5,985.09