Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $1400 at 8% compounded quarterly for 4 years.
A) $1921.90
B) $1904.68
C) $1515.41
D) $1848.00

Question

Quizplus · Accepted Answer

Using the compound interest formula $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 1400$, $r = 0.08$ (8% as a decimal), $n = 4$ (compounded quarterly), and $t = 4$ years, we calculate the accumulated value as follows: $A = 1400 \left(1 + \frac{0.08}{4}\right)^{4 \times 4} = 1400 \left(1 + 0.02\right)^{16} = 1400 \times (1.02)^{16} \approx 1921.90$.

Use the Compound Interest Formulas A A=P(1+rn)nt and A=Pert to solve. A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }A=P(1+nr​)nt and A=Pert to solve.

Use the Compound Interest Formulas A $A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$