Final answer:
To find the maturity value of the investment with an 8.8% per annum interest rate compounded quarterly, we apply the compound interest formula A = P(1 + r/n)^(nt), with the principal P being $7376.79, the rate r as 0.088, n as 4, and time t as 4.333 years.
Step-by-step explanation:
The student is dealing with a compound interest problem in their investment question. We will use the compound interest formula, A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. For this particular question, P is $7376.79, r is 0.088 (8.8%), n is 4 because the interest is compounded quarterly, and t is 4 years and 4 months, which is equivalent to 4.333 years.
The maturity value computation is as follows:
- Convert 4 months to a fraction of a year by dividing by 12, to get approximately 0.333.
- Plug the values into the formula: A = 7376.79(1 + 0.088/4)^(4*4.333).
- Calculate and round-off the final answer to the nearest cent after performing the calculation.
When completed, this will give us the maturity value of the investment.