Question

Ahmed invests $1,500 at an interest rate if 4%, compound quarterly. How much is the investment worth at the end of 6 years?

Answer 1

To calculate the future value of Ahmed's investment at an interest rate of 4%, compound quarterly over 6 years, we can use the formula A = P(1 + r/n)^(nt). Plugging in the values, the investment will be worth $1,795.86 at the end of 6 years.

Step-by-step explanation:

To calculate the future value of Ahmed's investment, we can use the formula:

A = P(1 + r/n)^(nt)

Where:

• A = future value
• P = principal amount ($1,500)
• r = annual interest rate (4% or 0.04)
• n = number of times the interest is compounded per year (quarterly, so 4)
• t = number of years (6)

Plugging in these values, we get:

A = 1500(1 + 0.04/4)^(4*6)

A = 1500(1 + 0.01)^24

A = 1500(1.01)^24

Calculating this value gives us A = $1,795.86. Therefore, the investment will be worth $1,795.86 at the end of 6 years.

Answer 2

1904.60

Step-by-step explanation:

pv=1500

interest=4/4

interest=1

n=6*4

n=24

Fv?

fv=pv(1+r/n)^nt