If you deposit $20,000 today in a bank account at a quoted rate of 12%, compounded quarterly, how much will be in the account in five years if you make no withdrawals? Round your
Answer to the nearest dollar.
A)$36,122
B)$21,020
C)$35,247
D)none of the above

Question

Quizplus · Accepted Answer

We can use the formula A=P(1+r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
Plugging in the given values, we get:
A = 20000(1+0.12/4)^(4*5)
A = 36122.08
Rounding to the nearest dollar, we get $36,122. Therefore, the best answer choice is A.

If You Deposit $20,000 Today in a Bank Account at a Quoted