Question

Use the periodic compound interest formula to solve. Suppose that $12000 is invested at 3.6% compounded quarterly. Find the total amount of this investment after 10 years.

Answer 1

Answer:

$ 17172.28

Step-by-step explanation:

Each period is 1/4 year ...in ten years there are 40 periods

Interest in decimal is .036      .....   per period this is  .036/4 = .009

The FV = PV (1+i)^n        FV = Future value  PV = present value  

          FV = 12 000 ( 1 + .009)^40 =17172.28