Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 9 - Review - Review Exercises - Page 671: 10

Answer

${{\$}} 12,830.27$

Work Step by Step

The amount A after investing P dollars at rate r annual interest, compounded m times a year, for a period of t years is $A=P\displaystyle \left(1+\frac{r}{m}\right)^{mt}$ Given $P=10,000,\ r=0.025,\ m=4,\ t=10$, $A=10,000(1+\displaystyle \frac{0.025}{4})^{4\cdot 10}\approx{{\$}} 12,830.27$
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