An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?

Question

asked May 12, 2020 35.9k views

2 Answers

Axelmukwena · Answer 1 · 2020-05-16T04:43:45+0000

Answer:

$\$11,964.17$

Explanation:

we know that

The compound interest formula is equal to

A=P(1+(r)/(n))^(nt)

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

$t=9\ years\\ P=\$7,650\\ r=5\%=5/100=0.05\\n=4$

substitute in the formula above

A=7,650(1+(0.05)/(4))^(4*9)

A=7,650(1.0125)^(36)

$A=\$11,964.17$