Final answer:
The future value of Jane's $3600 investment in an account with a 1.21% annual interest rate compounded quarterly for 2 years is closest to $3663.22, making option c the correct answer.
Step-by-step explanation:
The question deals with the calculation of future value of an investment using the formula for compound interest. Since the bank offers a 1.21% annual interest rate compounded quarterly, we need to account for compound interest being added four times a year. The formula to calculate the future value with compound interest is:
Future Value = Principal × (1 + (interest rate / number of compounding periods))^(number of compounding periods × number of years)
In this case, Jane's investment can be calculated as follows:
Future Value = $3600 × (1 + (0.0121 / 4))^(4 × 2)
Plugging in the values and calculating, we determine the future value of Jane's investment after 2 years. When we do the math, we find that the future value is closest to $3663.22, which corresponds to option c.