Answer
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A = 45,913.96
↓Steps Explained:↓
How much is 15000 worth after 100 quarters
using an annual interest rate of 4.5%
compounded quarterly?
Calculate effective interest rate
There are 4 quarters in a year
Convert interest rate to quarterly
| Quarterly Interest = | Annual Interest Rate |
| Compounding Periods |
| Quarterly Interest = | 0.045 |
| 4 |
Quarterly Interest = 0.01125
Calculate Accumulated Balance
A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Quarterly interest rate
and n = number of periods
Plugging in our values
A = 45,913.96
A = 15000(1.01125)100
A = 15000(3.0609304520943)
How much interest was earned?
Interest Earned = Accum. Value - Start Balance
Plug in our values
Interest Earned = 45,913.96 - 0.00
Interest Earned = 45,913.96
45913.96
Final Answer
A = 45,913.96Take the Quiz Switch to Chat Mode
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