Problema Solution
calculate the compound amount after 5 years for an investment of $7,700 at 6% interest compounded quarterly. (Points : 2.5)
Answer provided by our tutors
The formula for the compound amount is
A = P (1 + (r/n))^ (n*t)
P = $7,700
r = 0.06 (6%)
n = 4 (interest compounded quarterly)
t = 5 years
A = 7700*((1 + (0.06/4))^20)
A = $10370.8 approximately.