Experience the convenience of getting your questions answered at IDNLearn.com. Discover thorough and trustworthy answers from our community of knowledgeable professionals, tailored to meet your specific needs.

The basic equation for calculating compound interest is A = P(1 + nt.
If $1,200 is invested at an interest rate of 8% per year, compounded quarterly, how much will the
investment be worth at the end of 10 years?
Show your work!


The Basic Equation For Calculating Compound Interest Is A P1 Nt If 1200 Is Invested At An Interest Rate Of 8 Per Year Compounded Quarterly How Much Will The Inv class=

Sagot :

The amount of the investment at the end of the 10 years period if compounded quarterly is $2,649.6.

Compound interest

  • Principal, P = $1200
  • Interest rate, r = 8% = 0.08
  • Time, t = 10
  • Number of period, n = 4

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

= 1200(1 + 0.08/4)^(4×10)

= 1200(1 + 0.02)^40

= 1200(1.02)^40

= 1200(2.208)

= $2,649.6

Learn more about compound interest:

https://brainly.com/question/24924853

#SPJ1