An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?

a.

$11,964.17

b.

$11,867.66

c.

$9,338.56

d.

$8,554.94

The needed formula is

A = p (1 + r/n) ^ (nt)

We are looking for A.

Let r = 0.05

Let n = 4

Let p = 7650

Let t = 9

A = 7650 (1 + 0.05/4) ^ (4•9)

You can now finish. So, solve for A.

In other words, simplify the right side of the equation to find your answer.