posted by Iyeisha on .
An amount of $5000 is invested at an interest rate of 7% per year, compounded quarterly.
Find the value A(t) of the investment after t years.
A(t) = Ao(r + 1)^n.
r = (7/4) / 100 = 0.0175 = Quarterly
n = 4 comp / yr * t yrs = 4t.
t = Time for maturity or withdrawal in years.
A(t) = 5000(1.0175)^4t.
A(5) = 7073.89.
A(8) = 8711.07.