Find the total amount in the compound interest account.
-$5070 is compounded quarterly at a rate of 10% for 5 years. (The compound interest factor is 1.63862.)

Question

Quizplus · Accepted Answer

The total amount in the compound interest account can be calculated using the formula A = P(1 + r/n)^(nt), where A is the amount, P is the principal amount ($5070), r is the annual interest rate (10% or 0.10), n is the number of times the interest is compounded per year (quarterly, so 4 times), and t is the time the money is invested for (5 years). However, since the compound interest factor is given as 1.63862, we can directly calculate the amount by multiplying the principal by the factor: $5070 * 1.63862 = $8307.80.

Find the Total Amount in the Compound Interest Account