Final answer:
To find the value of Ahmed's investment at the end of 6 years, we can use the formula for compound interest.
Step-by-step explanation:
To find the value of Ahmed's investment at the end of 6 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal (initial investment)
- r is the interest rate
- n is the number of times interest is compounded per year
- t is the number of years
Plugging in the given values:
- P = $1,500
- r = 4% = 0.04
- n = 4 (compounded quarterly)
- t = 6 years
Substituting these values into the formula:
A = $1,500(1 + 0.04/4)^(4*6)
Using a calculator, we can evaluate this expression to find that the investment is worth approximately $1,809.16 at the end of 6 years.