How much will Ahsan's registered retirement savings deposit of $30 000.00 be worth in 21 years at 5% compounded quarterly?
A) $1 807 267.24
B) $83 578.88
C) $85 173.39
D) $38 941.88
E) $81 044.55

Question

Quizplus · Accepted Answer

We can use the compound interest formula with the given values:

A = P(1 + r/n)^(nt)

where:
A = final amount
P = initial deposit
r = annual interest rate (as a decimal)
n = number of times compounded per year
t = time (in years)

In this case, we have:
P = $30 000.00
r = 0.05 (5%)
n = 4 (quarterly compounding)
t = 21

Plugging into the formula, we get:

A = 30,000(1 + 0.05/4)^(4*21)
A ≈ $85 173.39

Therefore, the correct answer is C.

How Much Will Ahsan's Registered Retirement Savings Deposit of $30