Question

Find the amount that results from the given investment. $300 invested at 7% compounded quarterly after a period of 4 years 1. After 4 years, the investment results in $ (Round to the nearest cent as needed.)

Answer 1

Answer:

The total result of the investment after 4 years is $395.98

Step-by-step explanation:

Great Question, since we are talking about compounded interest we can use the Exponential Growth Formula to calculate the total value of the investment after 4 years. The Formula is the following,

$y = a*(1+\frac{x}{n})^{nt}$

Where:

• y is the total amount after a given time
• a is the initial amount
• r is the interest rate in decimals
• t is the given time
• n is the amount of times compounded per year

Now we can plug in the values given to us in the question and solve for the total amount (y).

$y = 300*(1+\frac{0.07}{4})^{4*4}$

$y = 300*(1.0175)^{16}$

$y = 300*1.3199$

$y = 395.98$ ... rounded to the nearest hundredth

Now we can see that the total result of the investment after 4 years is $395.98

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.