Answer:
$10,242.41
Step-by-step explanation:
To calculate amounts with compounded interest, we use [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where
-A is the total amount int he account after interest
-P is the principal or starting amount
-r is a decimal conversion of the percentage rate
-n is the number of times compounded a year
-t is the number of years
For this account, P=10000, r=0.016, n=4 for 4 quarters in a year, and t=1.5 since 18 months is 1.5 years. We substitute and find:
[tex]A=10000(1+\frac{0.016}{4})^{4(1.5)}[/tex]
[tex]A=10000(1+0.004)^{4(1.5)}=A=10000(1.004)^{6}=10000(1.024241)=10,242.41[/tex]
