Use the compound interest formula, the formula a equals p times 1 plus r over n to the n times t power . if $10,000 is invested at 2 percent quarterly for 5 years, what is the amount at the end of the term?
a $11,052
b$11,049
c $11,046
d$11,051

Option B is the correct answer.

Step-by-step explanation:

Initial amount deposited into the account is $10000 This means that the principal is

P = 10000

It was compounded quarterly. This means that it was compounded for four times in a year. So

n = 4

The rate at which the principal was compounded is 2%. So

r = 2/100 = 0.02

It was compounded for 5 years. So

t = 5

The formula for compound interest is

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

A = total amount in the account at the end of t years. Therefore

A = 10000 (1+0.02/4)^4×5

A = 10000 (1.005)^20

A = $11049

step-by-step explanation:

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