If $500 is invested at an interest rate of 3.75% per year, compounded quarterly,

Algebra
Tutor: None Selected Time limit: 1 Day

If $500 is invested at an interest rate of 3.75% per year, compounded quarterly, find the value of the investment after the given number of years. (Round your answers to the nearest cent.)
(a) 1 year
 

(b) 2 years
 

(c) 8 years

Jul 17th, 2015

Thank you for the opportunity to help you with your question!

After 1 year

A= 500 * (1+0.0375/4)^ 4

= $519.02

After 2 years

A= 500 * (1+0.0375/4)^ 8

= $ 538. 75

After 8 years

A= 500 * (1+0.0375/4)^ 32

= $ 673.99

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 17th, 2015

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