contestada

If $300 is invested at a rate of 6% per year and is compounded quarterly, how much will the investment be worth in 12 years? use the compound interest formula a equals p times the quantity 1 plus r divided by n end quantity raised to the power of n times t..

Respuesta :

The future value of the investment is 6,130.43.

What is the future value of the investment?

When an investment earns a compound interest that is compounded quarterly, it means that both the amount invested and the interest accrued would increase in value every quarter.

The formula that can be used to determine the future value is:

FV = P (1 + r)^nm

Where:

  • FV = Future value
  • P = Present value
  • R = interest rate : 6% / 4 = 1.5%
  • m = number of compounding
  • N = number of years

3000 x (1.015)^(12 x 4) = 6,130.43

To learn more about future value, please check: https://brainly.com/question/18760477

#SPJ1

Otras preguntas