Answer:
$14,277.80
Step-by-step explanation:
The standard formula for compound interest is given as;
A = P(1+r/n)^(nt) .....1
Where;
A = final amount/value
P = initial amount/value (principal)
r = rate yearly
n = number of times compounded yearly.
t = time of investment in years
For this case;
P = $7,400
t = 8 years
n = 4 (quarterly)
r = 9.5% = 0.095
Using equation 1.
A = $7,400(1+0.095/4)^(4×7)
A = $7,400(1.02375)^(28)
A = $7,400(1.929432606035)
A = $14,277.80
final amount/value after 8 years A =$14,277.80
Answer:
$15,683.28
Step-by-step explanation:
formula for compound interest is: y= P(1+r/n)^nt
initial vaule= 7,400
N=4
T=8
R=0.095
New formula: y=7400(1+0.095/4)^4(8)
First step in answering (answer the parentheses first): Y=7400(1.02375)^32
Second step (multiply the new rate with the new exponet) Y=7400(2.11936263142)
Third/Final step (multiply everything together): y=$15,683.28
