If $2900 is invested at 4.5% compounded quarterly, what is its value after 10 years?
amount = 2900(1.01225)^40
= .....
45036
To find the value of the investment after 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the investment
P is the principal amount (initial investment)
r is the annual interest rate (in decimal form)
n is the number of times the interest is compounded per year
t is the number of years
In this case, we have:
P = $2900
r = 4.5% = 0.045
n = 4 (compounded quarterly)
t = 10 years
Plugging the values into the formula:
A = 2900(1 + 0.045/4)^(4*10)
A = 2900(1 + 0.01125)^(40)
A = 2900(1.01125)^(40)
Now, we can calculate the value using a calculator or a spreadsheet.
A ≈ $4,937.09
Therefore, the investment will be approximately $4,937.09 after 10 years.