You deposit $15000 in an account that pays 1.43% interest compounded quarterly. What is the future value of that money? Round to the nearest cent as needed

To find the future value of the deposit with interest compounded quarterly, we can use the compound interest formula:

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

Where:
- $ A $ is the future value (the amount of money accumulated after interest),
- $ P $ is the principal amount (initial deposit),
- $ r $ is the annual interest rate (in decimal form),
- $ n $ is the number of times the interest is compounded per year,
- $ t $ is the time the money is invested or borrowed for (in years).

### Given:
- $ P = 15000 $ (the initial deposit),
- $ r = 1.43\% = 0.0143 $ (annual interest rate as a decimal),
- $ n = 4 $ (since interest is compounded quarterly),
- $ t $ is unspecified, so I'll calculate it for different values of $ t $.

Let me calculate the future value $ A $. How many years do you want to calculate for? For example, if you want 5 years, I can plug that in.



You deposit $15000 in an account that pays 1.43% interest compounded quarterly. What is the future value of that money? Round to the nearest cent as needed.

Learn how to calculate the future value of a $15000 deposit with 1.43% interest compounded quarterly using the compound interest formula. This problem demonstrates key financial mathematics concepts, including exponential growth. Suitable for students in Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation