Answer:
To calculate the total amount of a compound interest investment after 6 years, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A is the total amount after the specified time period,
P is the principal amount (initial investment),
r is the annual interest rate (in decimal form),
n is the number of times the interest is compounded per year, and
t is the number of years.
In this case, the principal amount (P) is $35,000, the annual interest rate (r) is 4% (or 0.04 in decimal form), the interest is compounded quarterly, so n is 4, and the time period (t) is 6 years.
Plugging in these values into the formula, we get:
A = 35000(1 + 0.04/4)^(4*6)
A = 35000(1.01)^24
Using a calculator, we can calculate the value of (1.01)^24, which is approximately 1.268242.
Therefore, the total amount (A) after 6 years is:
A = 35000 * 1.268242
A ≈ 44371.47
The correct answer is $44,371.47, which is closest to option C: $44,440.71.
Explanation: