Bridget puts $1,562.00 into an account to use for school expenses. The account earns 13.49% interest, compounded quarterly. How much will be in the account after 10 years?
Use the formula A=P1+
r
n
nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent.

We are given the following information:

- Principal (P): $1,562.00
- Interest rate (r): 13.49% (which is 0.1349 as a decimal)
- Compounding frequency (n): Quarterly, so $ n = 4 $
- Time (t): 10 years

We will use the compound interest formula:
\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]
Where:
- $ A $ is the amount in the account after $ t $ years.
- $ P $ is the initial principal.
- $ r $ is the annual interest rate expressed as a decimal.
- $ n $ is the number of times interest is compounded per year.
- $ t $ is the time in years.

Now, substituting the values into the formula:
\[
A = 1562 \left(1 + \frac{0.1349}{4}\right)^{4 \times 10}
\]
Let's calculate this step by step.After 10 years, the amount in the account will be approximately **$5,886.83** when rounded to the nearest cent.

Would you like more details or have any questions?

Here are 5 related questions to consider:
1. How would the result change if the interest was compounded monthly instead of quarterly?
2. What would the total interest earned be over the 10 years?
3. How much would be in the account if Bridget left the money for 15 years instead of 10?
4. What happens to the final amount if the interest rate increases to 15%?
5. How is continuous compounding different from quarterly compounding?

**Tip:** When calculating compound interest, the more frequently interest is compounded, the higher the final amount will be due to the effects of compounding.

Bridget puts $1,562.00 into an account to use for school expenses. The account earns 13.49% interest, compounded quarterly. How much will be in the account after 10 years? Use the formula A = P(1 + r/n)^(nt), where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years. Round your answer to the nearest cent.

Learn how to calculate the final amount for $1,562.00 at 13.49% interest, compounded quarterly over 10 years. This problem covers the compound interest formula and exponential growth, suitable for students in Grades 10-12.

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