algebra

posted by .

determine the amount of an investment if $500 is invested at an interest rate of 4.25% compounded quarterly for 12 years?

  • algebra -

    Use
    P(1+r)^n
    Since interest is compounded quarterly,
    the interest rate has to be divided by 4 to get the quarterly rate. The number of periods (years) has to be multiplied by 4 to get quarters.

    P=500
    R=(1+0.0425/4)
    n=12*4=48

    So
    500*(1+0.0425/4)^48
    =830.41

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Algebra

    Need help with these--- 30. Suppose the area of a square is x^2 - 6x + 9. What is the perimeter of the square?
  2. compounded interest

    calculate the future value of an investment of $8,500 if it is to be invested for 9 years at an interest rate of 6.1%, compounded quarterly.
  3. math

    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.
  4. College Algebra

    Investment A: $5,000 invested for 7 years compounded semiannually at 9%. Investment B: $ 6,000 invested for 5 years compounded quarterly at 4.1%. Find each total for each investment and determine which investment results are greater.
  5. algergra

    determine the amount of an inverstment if 400.00 is invested at an interest rate 7.25% compounded quarterly for 7 years
  6. Algebra

    Determine the amount of an investment if $500 is invested at an interest rate of 4.25% compounded quarterly for 12 years.
  7. Algebra 1

    Find the final amount of an investment if $2,000 is invested at an interest rate of 8% compounded quarterly for eight years. Please and thank you! I`ve been having so much trouble with this question. Thank you!
  8. Algebra

    I need to determine the amount of an investment if $1000 is invested at an interest rate of 8% compounded quarterly for 2 years. - Not quite sure how to go about this and would appreciate help. Thank you in advance.
  9. Math, please!

    I need to determine the amount of an investment if $1000 is invested at an interest rate of 8% compounded quarterly for 2 years. - Not quite sure how to go about this and would appreciate help. Thank you in advance.
  10. MATH

    Tiffany invested $725 at the end of every month in an investment fund that was earning interest at a rate of 4.74% compounded monthly. She stopped making regular deposits at the end of 10 years when the interest rate changed to 6.69% …

More Similar Questions