Question

You invest $5000 at 5.25% APR and is compounded quarterly. What is the investment worth after 10 years?

y=P(1+r/n)^nt

Answer 1

Y= $5000

r = $\frac{4}{100}$

r/n = $\frac{5.25}{4×100}$

nt = 10 × 4 = 40

$Y=5000(1+\frac{5.25}{400})^{40}=8423.48$