Question

you plan to deposit $18,000 into a savings account that has a 6.39% interest rate compounded quarterly. what will be the balance of your savings account after 12 years?
use this formula:
$a = p\left(1 + \frac{r}{n}\
ight)^{nt}$
enter the dollar amount rounded to the nearest cent.
your answer:

Explanation:

Step1: Define variables

$P = 18000$, $r = 0.0639$, $n = 4$, $t = 12$

Step2: Calculate periodic rate

$\frac{r}{n} = \frac{0.0639}{4} = 0.015975$

Step3: Calculate total periods

$nt = 4 \times 12 = 48$

Step4: Compute growth factor

$(1 + 0.015975)^{48} \approx 2.1507$

Step5: Calculate final amount

$A = 18000 \times 2.1507$

Answer:

$38712.60$