Before deciding to deposit money at the credit union, Heather checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 9.8% compounded quarterly. If Heather had deposited $1,700 at her local bank, how much would she have had in her account after 13 years?

Question

Tessa Haley

Business

18 March, 21:30

Before deciding to deposit money at the credit union, Heather checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 9.8% compounded quarterly. If Heather had deposited $1,700 at her local bank, how much would she have had in her account after 13 years?

+2

Answers (1)

Know the Answer?

Violet Bishop · Answer 1

Shw would have accumulated $5,985.09

Explanation:

Giving the following information:

The bank was paying a nominal interest rate of 9.8% compounded quarterly.

Heather deposit $1,700 at her local bank.

Number of years = 13 years

First, we need to calculate the quarterly interest rate:

i = 0.098/4 = 0.0245

Now, using the following formula we can calculate the final value:

FV = PV * (1+i) ^n

FV = 1,700 * (1+0.0245) ^ (13*4) = $5,985.09