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Find the accumulated amount of an investment of $2500 for 10 years at 4.3% compounded quarterly?

User Neolaser
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Final answer:

The accumulated amount of the investment of $2500 for 10 years at 4.3% compounded quarterly is approximately $3,642.63.

Step-by-step explanation:

To find the accumulated amount of an investment, we can use the formula:

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

Where:

  • A is the accumulated amount
  • P is the principal amount (initial investment)
  • r is the annual interest rate (expressed as a decimal)
  • n is the number of times the interest is compounded per year
  • t is the number of years

In this case, P = $2500, r = 4.3% = 0.043, n = 4 (compounded quarterly), and t = 10 years.

Substituting these values into the formula, we get:

A = 2500(1 + 0.043/4)^(4*10) = $2500(1.01075)^40 ≈ $3,642.63

User Bartosz Bierkowski
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