Answer:
Step-by-step explanation:
The compound interest formula is [tex]P(1+r/n)^{nt}[/tex]
- P: the initial amount of cash
- r: interest rate
- n: # of times that interest is compounded per time period
- t: # of time periods
Known information:
- P: 18733
- r: 5.1% or 0.051
- n: quarterly or 4
- t: 10 yrs
Now let's set up the equation:
Future amount: [tex]18733 (1+\frac{0.051}{4} )^{4*10}[/tex] [tex]=31,095.49[/tex]
Thus the future amount is $31.095.49.
Hope that helps!
