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

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Mathematics

Fernanda Love

23 May, 07:45

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

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Tito · Answer 1

FV = P (1 + r/t) ^nt; where P is the initial investment, r is the rate, t is the number of accumulation in a year, n is the number of years.

FV = 7650 (1 + 0.05/4) ^ (9 x 4) = 7650 (1 + 0.0125) ^36 = 7650 (1.0125) ^36 = 7650 (1.564) = $11,964.17