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NeTakaya
2 years ago
6

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the inves

tment at the end of 9 years?
a.
$11,964.17
b.
$11,867.66
c.
$9,338.56
d.
$8,554.94
Mathematics
2 answers:
cluponka [151]2 years ago
8 0
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

Oxana [17]2 years ago
5 0
A = P * ( 1 + r ) ^{t} \\ A = 7,650 * ( 1 +  \frac{0.05}{4y}) ^{9*4}= \\ =7,650 * 1.0125 ^{36}= \\ 7,650 * 1.56394 =11,964.17
Answer:
A ) $11,964.17
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