Question

If $360 is invested at an interest rate of 4% per year and is compounded quarterly, how much will the investment be worth in 18 years?

Answer 1

The answer is $736.96
 formula W=p(1+i/q) *(qy)
where p=360 , y=18 (years) , i-0.04 , q=4 (quarterly compounding)
 W=360(1+.01)*72 
 =360*2.0471

Answer 2

Answer:

amount = $736.955

Explanation:

given data

principal = $360

interest rate = 4% per year  = 0.04

time = 18  year

to find out

how much the investment

solution

we will apply here formula for amount that is express as

amount = principal × $(1 +\frac{r}{q})^{qt}$     ...........................1

here r is interest rate and t is time and q is quarterly compounding that is 4

so put here all value we get

amount = principal × $(1+ \frac{r}{q})^{qt}$

amount = 360 × $(1+ \frac{0.04}{4})^{4*18}$

amount = 360 × $(1.01)^{72}$

amount = $736.955