Question

Find the total amount after 2 years of an investment of $1500 in an account paying 4% interest, compounded quarterly.

A=P(1+r/n)nt                  ( '' nt '' are exponents )
Question 1 options:

$1622.40


$1624.29


$1560


$1620

Answer 1

The formula is
A=P(1+r/n)^nt
A future value?
P present value 1500
R interest rate 0.04
N compounded quarterly 4
T time 2 years
A=1,500×(1+0.04÷4)^(4×2)
A=1,624.29

So the answer is B
Hope it helps!