Question

Find the total value of the investment after the time given. $130 at 9.4% compounded quarterly for 2 years

Answer 1

To find the total value of the investment after 2 years at 9.4% compounded quarterly with a principal amount of $130, we can use the formula for compound interest.

Step-by-step explanation:

To find the total value of the investment after the given time, we can use the formula for compound interest:

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

Where:

• A is the total value of the investment
• P is the principal amount
• r is the interest rate
• n is the number of times the interest is compounded per year
• t is the time in years

Plugging in the given values:

A =
`130(1 + 0.094/4)^((4*2))`

A ≈ $148.33

The total value of the investment after 2 years is approximately $148.33.