Question

Determine the amount of an investment if $1000 is invested at an interest rate of 7.3% compounded quarterly for 30 years.

$8,760.53
$8,876.13
$8,279.26
$3,190

Answer 1

Well, this is rather lengthy so...

First, you'd do...
1000 * 0.073 = $73.

$73 is for one quarter, so...

A quarter of a year is 1/4 of the year, so you'd need to do... $73 * 4.
= $292.

$292 is for one year.

Now do...

$292 * 30

Your Answer:
A. $8760 is invested at an interest rate of 7.3% compounded quarterly for 30 years.