investing $27,000 in an account paying 7.25% interest compounded quarterly.
What will Jamie's account balance be in 14 years?
Answer:
$74,495.30
Jamie's account balance will be $73,828.74 after 14 years.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest.
Here, Principal = $27,000
Rate of interest = 7.25% compounded quarterly
= 0.0725/4 = 0.018125 per annum
Time = 14 years or 56 quarters
Now, A = P(1+i)ⁿ
A = 27000(1+0.018125)⁵⁶
A = 27000 X 2.7343
A = 73828.74
Thus, Jamie's account balance will be $73,828.74 after 14 years.
Learn more about Compound Interest from:
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