Use the formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$ to find the total amount of money accumulated at the end of the indicated time period for the following investments: $1,500 for 5 years at 4.5% compounded quarterly. The choices are rounded to the nearest cent.
A) $507.06
B) $6,941.67
C) $1,876.13
D) $750.45
E) $4,690.31

Question

Quizplus · Accepted Answer

Using the formula with the given values, we have:

$$A=1500\left(1+\frac{0.045}{4}\right)^{4\cdot 5}=1876.13$$

Therefore, the best choice is C.

Use the Formula A=p(1+rn)ntA = p \left( 1 + \frac { r } { n } \right) ^ { n t }A=p(1+nr​)nt

Use the Formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$