contestada

$10,000 is compounded quarterly at 12% interest for t years. what expression represents the amount of money after t years.

Respuesta :

we know that  

The compound interest formula is equal to  

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

[tex]t=t\ years\\ P=\$10,000\\ r=0.12\\n=4[/tex]  

substitute in the formula above  

[tex]A=10,000(1+\frac{0.12}{4})^{4t}[/tex]  

[tex]A=10,000(1+0.03)^{4t}[/tex]  

[tex]A=10,000(1.03)^{4t}[/tex]  

therefore

the answer is

[tex]A=10,000(1.03)^{4t}[/tex]