Question

Using the formula A=P(1+r/n) ^nt calculate the value of an initial investment of $4,500 after 10 years at 4% interest, compounded quarterly (four times per year).

Answer 1

Answer:

Using the formula provided, the value of that investment after 10 years is

A = P(1 + r/n) ^nt

   = 4500 x (1 + (4/100)/4)^(10 x 4)

   = 4500 x (1.01)^40

   = 6699.89$

Hope this helps!

:)