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Korolek [52]
1 year ago
8

After 8 years, what is the total amount of a compound interest investment of $25,000 at 3% interest, compounded quarterly?

Mathematics
1 answer:
Shkiper50 [21]1 year ago
4 0

The correct answer is:      D) $31,752.78

Explanation:

The formula for compound interest is:

where A is the total amount, p is the principal invested, r is the interest rate as a decimal number, n is the number of times per year the interest is compounded, and t is the number of years.

The principal in this problem is 25,000; the interest rate is 3% = 3/100 = 0.03; the number of times the interest is compounded is 4; and the number of years is 8:

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