Question

Jane invested $1,200 at 9% interest compounded quarterly. How much money will she

have after 7 years?

Answer 1

The Amount after 7 years of investment is $2193.6

Explanation:

Given as :

The invested principal = p = $1200

The rate of interest = r = 9%

Then time period for investment = t = 7 years

Let The amount after 7 years = $ A

From Compound Interest method

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $1200 ×
`(1+(\textrm 9)/(100))^(\textrm 7)`

Or, A = $1200 ×
`(1.09)^(7)`

or, A = $1200 × 1.8280

or , A = $2193.6

So amount after 7 years of investment = A = $2193.6

Hence The Amount after 7 years of investment is $2193.6 Answer