Answer:
<u>The total amount after 9 years of US$ 2,000 invested at a rate of 2.6% compounded quarterly is US$ 5,038.89</u>
Step-by-step explanation:
1. Let's review the data given to us for solving the question:
Investment amount = US$ 2,000
Duration of the investment = 9 years = 36 quarters
Annual interest rate = 2.6% compounded quarterly
2. Let's find the future value of this investment after 9 years or 36 quarters, using the following formula:
FV = PV * (1 + r) ⁿ
PV = Investment = US$ 2,000
number of periods (n) = 36 (number of quarters in 9 years)
rate (r) = 3% = 0.026
Replacing with the real values, we have:
FV = 2,000 * (1 + 0.026) ³⁶
FV = 2,000 * (1.026) ³⁶
FV = 2,000 * 2.51944561
<u>FV = 5,038.89 (Rounding to two decimal places)</u>
