Answer:
$64,269.65
Step-by-step explanation:
Lets use the compound interest formula provided to solve this:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 6.25% into a decimal:
6.25% -> [tex]\frac{6.25}{100}[/tex] -> 0.0625
Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:
[tex]A=10,000(1+\frac{0.0625}{4})^{4(30)}[/tex]
[tex]A=64,269.65[/tex]
The value of Sara's investment after 30 years will be $64,269.65
