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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 :

sandlee09

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,

[tex]y = a*(1+\frac{x}{n})^{nt}[/tex]

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).

[tex]y = 300*(1+\frac{0.07}{4})^{4*4}[/tex]

[tex]y = 300*(1.0175)^{16}[/tex]

[tex]y = 300*1.3199[/tex]

[tex]y = 395.98 [/tex] ... 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.

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