Question

Find the amount that results from the given investment.$700 invested at 2% compounded quarterly after a period of 3 years

Answer 1

Step-by-step explanation:

We'll use the below compound interest formula to solve the given question;

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

where A = future amount

P = principal or starting amount = $700

r = annual interest rate in decimal = 2% = 0.02

n = number of compounding periods = 4

t = time in years = 3

Let's go ahead and substitute the given values into the formula and solve for A as seen below;

`A=700(1+(0.02)/(4))^(4*3)=700(1.005)^(12)=700*1.06167781186=743.17`

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