Answer:
Explanation:
A = P(1 + r/n)^(n*t)
where:
A = the future value of the investment
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years the money is invested
In this case, we have:
P = $6,000.00
r = 4% = 0.04
n = 4 (compounded quarterly)
t = 7 years
So the formula becomes:
A = $6,000.00(1 + 0.04/4)^(4*7)
A = $6,000.00(1 + 0.01)^28
A = $6,000.00(1.01)^28
A = $8,199.11 (rounded to the nearest cent)
Therefore, you will have $8,199.11 in the account in 7 years.