The future value of the investment after 12 years will be $9,481.
<h3>What is future value?</h3>
The future value of an investment is its value at a future date. It is obtained by multiplying the present value of an asset by its growth rate raised to the number of periods for the investment.
We can compute the future value of an asset with this model:
FV = PV(1+r)^n
<u>where</u>:
FV = future value
PV = present value
r = annual interest rate
n = number of periods interest held
We can also compute the future value by inputting the variables on an online financial calculator as follows:
<h3>Data and Calculations:</h3>
Investment amount = $7,200
Compound interest rate = 2.3% quarterly
Period of investment = 12 years
N (# of periods) = 48 (12 x 4)
I/Y (Interest per year) = 2.3%
PV (Present Value) = $7,200
PMT (Periodic Payment) = $0
<u>Results:</u>
FV = $9,481.01
Total Interest $2,281.01
Thus, the future value of the investment after 12 years will be $9,481.
Learn more about future value at brainly.com/question/24703884
