In 25 years the account balance will be $38.51 if Jimmy Page puts $30 into a savings account that promises 1% interest compounded quarterly.
What is compound interest?
It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
[tex]\rm A = P(1+\dfrac{r}{n})^{nt}[/tex]
Where A = Final amount
P = Principal amount
r = annual rate of interest
n = how many times interest is compounded per year
t = How long the money is deposited or borrowed (in years)
P = $30
r = 1% = 0.01
n = 4
[tex]\rm A = 30(1+\dfrac{0.01}{4})^{4\times25}[/tex]
After calculating:
A = $38.51
Thus, in 25 years the account balance will be $38.51 if Jimmy Page puts $30 into a savings account that promises 1% interest compounded quarterly.
Learn more about the compound interest here:
brainly.com/question/26457073
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