Description
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
$
(b) 2 years
$
(c) 8 years
$
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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
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