Question
If you invest $7500 at 3 1/4 % interest compounded quarterly, how much will you have in 12 yrs?
If you invest $7500 at 3 1/4 % interest compounded quarterly, how much will you have in 12
yrs?
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Koala Tutor
Koala Ai Support
Got a question with my answer?
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal (initial investment)
r = interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
Given:
P = $7500
r = 3 1/4% = 0.0325 (3.25% expressed as decimal)
n = 4 (compounded quarterly)
t = 12 years
Plugging in the values into the formula:
A = $7500 * (1 + 0.0325/4)^(4*12)
A = $7500 * (1.008125)^48
A ≈ $7500 * 1.480
A ≈ $11,100
Therefore, you will have approximately $11,100 in 12 years if you invest $7500 at 3 1/4% interest compounded quarterly.
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