MENU
You start with 1,800 in your savings account. You do not make any deposits or withdrawals and earn 10% interest, compounded quarterly. How much money will you have in your account after five years?
Suggested Answer: D
Get Premium C3E Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
26 comments · newest first
MI
Ming
4 months ago
Just remember to divide the interest by 4 for quarterly!
AR
Argelia
4 months ago
I feel like I might mess up the quarters part.
AL
Almeta
4 months ago
Yeah, but it's just a formula. Shouldn't be too hard.
AL
Alecia
4 months ago
I think it's a bit tricky with compounding.
MA
Margret
6 months ago
I don't trust those numbers, double-check the math!
JO
Josue
6 months ago
I thought it would be less, but compounding is powerful!
CA
Carolann
6 months ago
Wait, are you sure about that? Seems too good to be true.
KR
Kristal
6 months ago
That's a solid return, compounding really helps!
NA
Nana
6 months ago
You'll have about $2,918 after 5 years!
LA
Lang
7 months ago
$2,937.42? That's enough to buy a boat! Or maybe just a really nice fishing rod.
SA
Salena
7 months ago
$2,937.42? I wish I had that much in my savings account. Maybe I should stop buying so many lattes.
TU
Tuyet
7 months ago
$2,937.42? That's a lot of money! Time to start planning my dream vacation.
DO
Dominic
7 months ago
$2,937.42 seems about right. Compounding interest is a powerful thing!
NO
Norah
7 months ago
The answer is $2,937.42. I'm confident in my calculation.
VA
Vanesa
7 months ago
Yes, I believe so! We also need to remember to convert the interest rate to a quarterly rate. I hope I can remember all the steps during the exam!
ET
Ethan
8 months ago
I’m a bit confused about how to handle the compounding periods. Is it just the number of years times 4 for quarterly?
EL
Eliseo
8 months ago
I remember a similar question where we had to calculate future value with different interest rates. I think we just plug in the numbers into the formula.
LA
Lajuana
8 months ago
I think we need to use the compound interest formula, but I’m not entirely sure how to apply it with quarterly compounding.
GE
Gearldine
9 months ago
No problem, I've got this. I'll just plug in the numbers and let my calculator do the work.
AV
Avery
9 months ago
Wait, what's the difference between simple and compound interest again? I better make sure I'm using the right formula here.
JE
Jeanice
9 months ago
Okay, I know the formula is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years. I'll plug in the values and calculate.
AL
Aleisha
9 months ago
Hmm, I'm not sure how to approach this. I'll need to review the compound interest concepts.
DE
Desmond
9 months ago
This looks straightforward, I think I can solve this using the compound interest formula.
BR
Brock
3 months ago
Can't wait to see the final amount!
TA
Tamekia
3 months ago
It's all about the formula!
JA
Jaime
3 months ago
I love compound interest problems!