Answered

Get detailed and reliable answers to your questions on IDNLearn.com. Ask your questions and receive prompt, detailed answers from our experienced and knowledgeable community members.

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..

Sagot :

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

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.