2. If you deposit $25,000 now at 6.5% compounded quarterly, how much will you have in 30 years?

To find out how much you'll have in 30 years with a deposit of $25,000 at an interest rate of 6.5% compounded quarterly, we use the compound interest formula:

\[
A = P \left( 1 + \frac{r}{n} \right)^{nt}
\]

Where:
- $ A $ is the amount of money accumulated after interest,
- $ P = 25,000 $ is the initial deposit (principal),
- $ r = 0.065 $ is the annual interest rate (6.5%),
- $ n = 4 $ is the number of times the interest is compounded per year (quarterly),
- $ t = 30 $ is the number of years.

Now, plugging in the values:

\[
A = 25,000 \left( 1 + \frac{0.065}{4} \right)^{4 \times 30}
\]

Let me calculate that for you.After 30 years, with a deposit of $25,000 at an interest rate of 6.5% compounded quarterly, you will have approximately **$172,984.44**.

Would you like more details or have any other questions? Here are five related questions you might find useful:

1. How does the interest formula change if the compounding frequency is monthly instead of quarterly?
2. What is the difference between simple and compound interest over long periods like 30 years?
3. How would the final amount change if the interest rate were 5% instead of 6.5%?
4. What is the effect of increasing the initial deposit to $50,000 under the same conditions?
5. How much interest would you earn in the last year of the 30-year period?

**Tip:** Compounding more frequently results in slightly higher returns because interest is calculated on the accumulated interest.

If you deposit $25,000 now at 6.5% compounded quarterly, how much will you have in 30 years?

Calculate how much a $25,000 deposit will grow in 30 years at 6.5% compounded quarterly. Using the compound interest formula, find out that the final amount will be approximately $172,984.44. Ideal for high school students learning financial mathematics.

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