Baldwin is saving up money to buy a car. Baldwin puts $10,000.00 into an account which earns 9% interest, compounded quarterly. How much will he have in the account after 10 years?
Use the formula A=P1+
r

n
nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent.

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IamN1K0 IamN1K0 · Answer 1 · 2024-02-26T15:47:56+01:00

Answer:

after 10 years, Baldwin will have approximately $23,676.73 in the account, rounded to the nearest cent.

Step-by-step explanation:

To calculate how much Baldwin will have in the account after 10 years with 9% interest compounded quarterly, we can use the formula:

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

Given:

- Principal (P) = $10,000.00

- Interest Rate (r) = 9% or 0.09 (expressed as a decimal)

- Number of times interest is compounded per year (n) = 4 (quarterly)

- Time (t) = 10 years

Plugging in the values:

A = $10,000.00 * (1 + 0.09/4)^(4*10)

Calculating:

A = $10,000.00 * (1 + 0.0225)^40

A = $10,000.00 * (1.0225)^40

A = $10,000.00 * 2.367673

Therefore, after 10 years, Baldwin will have approximately $23,676.73 in the account, rounded to the nearest cent.