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Find the amount that results from the given investment.

$400 invested at 4% compounded quarterly after a period of 3 years

1 Answer

1 vote

Final answer:

The amount that results from the given investment is approximately $432.19.

Step-by-step explanation:

To find the amount that results from the given investment, we can use the formula for compound interest. The formula is:

A = P(1 + r/n)^(nt)

Where:
A = the amount
P = the principal (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years

Given:
P = $400
r = 4% (or 0.04)
n = 4 (compounded quarterly)
t = 3 years

Substituting the values into the formula:

A = 400(1 + 0.04/4)^(4*3)

Simplifying:

A = 400(1.01)^12

Calculating:

A ≈ $432.19

Therefore, the amount that results from the given investment is approximately $432.19.

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