Find the accumulated value of an investment of $900 at 12% compounded quarterly for 6 years
To find the accumulated value of an investment at 12% compounded quarterly for 6 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = accumulated value
P = principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times the interest is compounded per year
t = number of years
In this case:
P = $900
r = 12% or 0.12
n = 4 (quarterly compounding)
t = 6 years
Plugging in the values:
A = $900(1 + 0.12/4)^(4*6)
A = $900(1 + 0.03)^24
A = $900(1.03)^24
A = $900 * 2.0132
A = $1811.88
Therefore, the accumulated value of an investment of $900 at 12% compounded quarterly for 6 years is $1811.88.