If you invest $10,000 today in an account that pays 4% interest, compounded quarterly, the balance in the account at the end of ten years, if you make no withdrawals, is closest to:
A) $14,000.00
B) $14,802.44
C) $14,888.64
D) $14,918.25

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $10,000, r = 0.04, n = 4, and t = 10. Plugging in these values gives A ≈ $14,918.25.

If You Invest $10,000 Today in an Account That Pays