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you deposit $2000 in an account that pays 3% annual interest. Find the balance after 10 years if the
Discussion in 'Calculator Requests' started by math_celebrity, Jan 28, 2022.
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- compound interest
math_celebrity Administrator Staff Member
you deposit $2000 in an account that pays 3% annual interest. Find the balance after 10 years if the interest is compounded quarterly. Please give your answer to 2 decimal places.
Using our compound interest calculator, with 10 * 4 = 40 quarters, we have:
$2,696.70math_celebrity, Jan 28, 2022
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Question:
You deposit $2,000 in a savings account that pays 10 percent interest, compounded annually. How much will your account be worth in 15 years?
A. $2,030.21
B. $5,000.00
C. $8,091.12
D. $8,354.50
E. $9,020.10
Compounding Interest:
The compounding interest refers to a method to calculate the interest earned on an interest-bearing asset. This method assumes that received interests are reinvested in the same assets. Consequently, there will be additional interest earnings on original interests.
Answer and Explanation: 1
The answer is D. $8,354.50
Given information:
- Initial deposit = $2,000
- N = 15
- I = 10%
Determine the account balance after 15 years:
{eq}Balance =...
See full answer below.
Learn more about this topic:
Compounding Interest Formulas: Calculations & Examples
from
Chapter 16 / Lesson 8
What is compound interest? See how the compound interest formula is used in daily, monthly, quarterly, and annual compound interest example calculations.
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