Find the amount that results from the investment.
-$480 invested at 16% compounded quarterly after a period of 9 years
A) $1,894.12
B) $1,825.42
C) $1,969.89
D) $1,489.89

Question

Quizplus · Accepted Answer

To find the amount from an investment compounded quarterly, we use the formula A = P(1 + r/n)^(nt), where A is the amount, P is the principal amount ($480), r is the annual interest rate (16% or 0.16), n is the number of times the interest is compounded per year (4 for quarterly), and t is the time the money is invested for in years (9 years). Plugging in the values: A = 480(1 + 0.16/4)^(4*9) = 480(1 + 0.04)^(36) = 480(1.04)^36 ≈ $1,969.89.

Find the Amount That Results from the Investment