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18 votes
After 8 years, what is the total amount of a compound interest investment of $25,000 at 3% interest, compounded quarterly?

User Hamid Niakan
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1 Answer

19 votes
19 votes

The correct answer is: D) $31,752.78

Step-by-step explanation:

The formula for compound interest is:

where A is the total amount, p is the principal invested, r is the interest rate as a decimal number, n is the number of times per year the interest is compounded, and t is the number of years.

The principal in this problem is 25,000; the interest rate is 3% = 3/100 = 0.03; the number of times the interest is compounded is 4; and the number of years is 8:

User LeoMurillo
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