Question

If $360 is invested at an interest rate of 4% per year and is compounded quarterly, how much will the investment be worth in 18 years?

Answer 1

amount = $736.955

Step-by-step explanation:

given data

principal = $360

interest rate = 4% per year = 0.04

time = 18 year

to find out

how much the investment

solution

we will apply here formula for amount that is express as

amount = principal ×
`(1 +(r)/(q))^(qt)` ...........................1

here r is interest rate and t is time and q is quarterly compounding that is 4

so put here all value we get

amount = principal ×
`(1+ (r)/(q))^(qt)`

amount = 360 ×
`(1+ (0.04)/(4))^(4*18)`

amount = 360 ×
`(1.01)^(72)`

amount = $736.955

Answer 2

The answer is $736.96
formula W=p(1+i/q) *(qy)
where p=360 , y=18 (years) , i-0.04 , q=4 (quarterly compounding)
W=360(1+.01)*72
=360*2.0471