Final answer:
The accumulated value of a $100 investment at 16% interest compounded quarterly over 4 years is approximately $187.29, calculated using the compound interest formula A = P(1 + r/n)^(nt).
Step-by-step explanation:
To find the accumulated value of a $100 investment at 16% compounded quarterly for 4 years, we use the compound interest formula:
A = P(1 + r/n)nt
So our calculation becomes:
A = $100(1 + 0.16/4)4*4
A = $100(1 + 0.04)16
A = $100(1.04)16
To find the value of (1.04)16, we multiply 1.04 by itself 16 times or use a calculator. The result of (1.04)16 is approximately 1.8729.
A = $100 * 1.8729
A = $187.29
The accumulated value of the investment after 4 years is approximately $187.29.