nicole invested $180 in an account paying an interest rate of 3.8% compounded quarterly. assuming no…

nicole invested $180 in an account paying an interest rate of 3.8% compounded quarterly. assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 20 years?

nicole invested $180 in an account paying an interest rate of 3.8% compounded quarterly. assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 20 years?

Answer

Answer:

$380$

Explanation:

Step1: Identify compound - interest formula

$A = P(1+\frac{r}{n})^{nt}$

Step2: Define the variables

$P = 180$, $r=0.038$, $n = 4$, $t = 20$

Step3: Substitute the values into the formula

$A=180(1 +\frac{0.038}{4})^{4\times20}=180(1 + 0.0095)^{80}$

Step4: Calculate the value inside the parentheses

$1+0.0095=1.0095$

Step5: Calculate the exponent

$(1.0095)^{80}\approx2.111$

Step6: Calculate the final amount

$A = 180\times2.111=379.98\approx380$