Answer :
The money in her savings account will be $2188.5 after 10 years.
Step-by-step explanation:
It is given that,
- The amount deposited is $1500.
- The account receives 3.8% interest compounded quarterly.
- It is compounded for 10 years.
To find the money in the account after 10 years :
The formula used here is,
⇒ [tex]A = P(1+r/n)^{nt}[/tex]
where A is the amount after 10 years.
- P is the initial amount deposited ⇒ P = 1500
- r is the rate ⇒ r = 3.8/100 = 0.038
The correct form of the interest rate converted from % to decimal form by dividing the rate with 100.
- n is the number of times interest is compounded per year⇒ n = 4
- t is the time period ⇒ t = 10
⇒ [tex]1500(1+0.038/4)^{10\times 4}[/tex]
⇒ [tex]1500(4.038/4)^{40}[/tex]
⇒ [tex]1500\times1.0095^{40}[/tex]
⇒ [tex]1500 \times 1.459[/tex]
⇒ [tex]2188.5[/tex]
Therefore, The money in her savings account will be $2188.5 after 10 years.