Final answer:
The future value of a $1500 investment compounded quarterly at an annual rate of 4.75% can be calculated for 1, 2, and 3 years using the compound interest formula.
Step-by-step explanation:
To find the future value of an investment with compound interest, we can use the formula A = P(1 + r/n)nt, where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (initial investment).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
In this case, we are asked to find the value of a $1500 investment at an interest rate of 4.75% per year, compounded quarterly. Applying the formula:
- For 1 year (t=1): A = $1500(1 + 0.0475/4)4(1)
- For 2 years (t=2): A = $1500(1 + 0.0475/4)4(2)
- For 3 years (t=3): A = $1500(1 + 0.0475/4)4(3)
By calculating these, we can find the total value of the investment after 1, 2, and 3 years.