Question

Matthew invests $500 into an account with a 2.5% interest that is compounded quarterly. How much money will he have in this account if he keeps it for 10 years? Round your answer to the nearest cent. D

Answer 1

Answer:

$641.4

Step-by-step explanation:

500(1 + 0.025/4)⁴⁰

= 641.5134103

Answer 2

Answer:

$642

Step-by-step explanation:

Use the compound interest formula and substitute the correct values: A=500(1+0.025/4)$^{4(10)}$.

Simplify by using order of operations: A=500(1.00625)$^{40}$=500(1.283026821) ≈ 642.