Final answer:
The value of Ahmed's investment at the end of 6 years is approximately $1690.44.
Step-by-step explanation:
To find the value of Ahmed's investment at the end of 6 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A = the future value of the investment
- P = the principal amount (initial investment)
- r = the annual interest rate (in decimal form)
- n = the number of times the interest is compounded per year
- t = the number of years
Plugging in the given values:
- P = $1500
- r = 0.04 (4% expressed as a decimal)
- n = 4 (quarterly compounding)
- t = 6 years
Substituting these values into the formula:
- A = $1500(1 + 0.04/4)^(4*6)
- A = $1500(1 + 0.01)^24
- A = $1500(1.01)^24
- A ≈ $1690.44
Therefore, the investment will be worth approximately $1690.44 at the end of 6 years.