Question

Bram Johnson invests $500 at the end of each quarter for 10 years. The account earns 12% interest annually. What is the value of the account at the end of 10 years? $37,700 $37,700.60 $37,000 $3,700 None of these

Answer 1

None of these. If Bram was to invest $500 at the end of each quarter for those ten years, it would be closer to $40,000 due to that interest calculating yearly. Even with 0 interest, Bram would have $20,000 in the account and this figures how this increased so much in that time period.