Answer:
The amount after three years is $12831.8
Explanation:
* Lets revise the compound interest
- The formula for compound interest is A = P (1 + r/n)^(nt)
Where:
# A = the value of the investment with interest
# P = the initial investment amount
# r = the annual interest rate (decimal)
# n = the number of times that interest is compounded per unit t
# t = the time the money is invested
* Now lets solve the problem
∵ The initial amount is $9000
∴ P = $9000
∵ The rate is 12%
∴ r = 12/100 = 0.12
∵ The interest is compound quarterly
∴ n = 4
∵ The money invested for 3 years
∴ t = 3
∵ A = P (1 + r/n)^(nt)
∴ A = 9000(1 + 0.12/4)^(4×3)
∴ A = 9000(1 + 0.03)^12
∴ A = 9000(1.03)^12 = $12831.8