Mathematics College

If you invest 11775.00 at a rate of 7.10 percent annum, compounded quarterly what will the total value of your investment be after 4 years

Answers

Answer 1

Answer:

The total value of the investment will be $15,603.38 after 4 years

Step-by-step explanation:

Compound Interest

It occurs when interest in the next period is earned on the principal sum plus previously accumulated interest.

We'll use the formula:

[tex]{\displaystyle A=P\left(1+{\frac {r}{n}}\right)^{nt}}[/tex]

Where:

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

The investment is P=$11,775 at a rate of r=7.10% = 0.071 compounded quarterly. Since there are 4 quarters in a year, n=4. The investment will last t=4 years, thus:

[tex]{\displaystyle A=\$11,775\left(1+{\frac {0.071}{4}}\right)^{4*4}}[/tex]

[tex]{\displaystyle A=\$11,775\left(1.01775\right)^{16}}[/tex]

[tex]\boxed{A = \$15,603.38}[/tex]

The total value of the investment will be $15,603.38 after 4 years

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Step-by-step explanation:

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1point
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Answers

Answer:

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Step-by-step explanation:

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Answers

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Step-by-step explanation:

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Answer:

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Answers

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Answer:

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Step-by-step explanation:

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