$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Find the accumulated value of an investment of $1500 at 10% compounded quarterly for 2 years.
A)$1575.94
B)$1815.00
C)$1800.00
D)$1827.60

Question

Quizplus · Accepted Answer

The correct formula to use is $A = P \left(1 + \frac{r}{n}\right)^{nt}$, where $P = 1500$, $r = 0.10$, $n = 4$ (since interest is compounded quarterly), and $t = 2$. Plugging these values in, we get $A = 1500 \left(1 + \frac{0.10}{4}\right)^{4 \cdot 2} = 1500 \left(1 + 0.025\right)^8 = 1500 \cdot (1.025)^8 \approx 1827.60$.

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

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