Suppose 10000 is deposited at a money market account that pa

Suppose $10,000 is deposited at a money market account that pays interest a rate of 5% per year coin pounded quarterly. Determine the balance in the account after 4 years.

Solution

We have to use the following formula

A=P(1+(r/n))^{n t}

A=1000(1+(.05/4))^4*4=   10000(4.05/4)¹⁶

A=12198.9