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pychu [463]
2 years ago
8

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? Use the compound interest formula A = P(1 r over n)nt. $175. 86 $422. 39 $430. 61 $736. 96.
Business
1 answer:
podryga [215]2 years ago
5 0

The worth of investment in 18 years will be $1,096.96 after adding $736.96 of the interest amount compounded quarterly.

Computation:

Given,

P Principal amount =$360

r Interest rate =4%

t Time period =18 years

The formula used to determine the compound interest amount is:

A=P\times(1+r)^{n\times\;t}

Substituting the values in the formula:

\begin{aligned}A&=\$360\times(1+0.04)^{4\times18}\\&=\$360\times2.0471\\&=\$736.96\end{aligned}

Therefore, the correct answer for the worth of investment is $736.96.

To know more about compound interest, refer to the link:

brainly.com/question/25857212

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