Key Concept: Interest on Deposits
a) \$13,468.55
[Solution Description]
Using the compound interest formula:
$A = P \left(1 + \frac{r}{n}\right)^{nt}$
Here, $P = 10000$, $r = 6\% = 0.06$, $n = 4$ (since it's compounded quarterly), and $t = 5$ years.
Plugging in the values:
$A = 10000 \left(1 + \frac{0.06}{4}\right)^{4 \times 5} = 10000 \left(1.015\right)^{20}$
Calculating $(1.015)^{20}$:
$1.015^{20} = 1.346855007$
Then:
$A = 10000 \times 1.346855007 = 13468.55$
So, the amount after 5 years is \$13,468.55.
Your Answer is correct.
a) \$13,468.55
[Solution Description]
Using the compound interest formula:
$A = P \left(1 + \frac{r}{n}\right)^{nt}$
Here, $P = 10000$, $r = 6\% = 0.06$, $n = 4$ (since it's compounded quarterly), and $t = 5$ years.
Plugging in the values:
$A = 10000 \left(1 + \frac{0.06}{4}\right)^{4 \times 5} = 10000 \left(1.015\right)^{20}$
Calculating $(1.015)^{20}$:
$1.015^{20} = 1.346855007$
Then:
$A = 10000 \times 1.346855007 = 13468.55$
So, the amount after 5 years is \$13,468.55.