If $360 is invested at an interest rate of 4% per year and is compounded quarterly, how much will the investment be worth in 18 years?

1 Answer
Jan 28, 2018

#$1096.96#

Explanation:

The formula for interest is #P(1+r/(100n))^(nt)#, where #P# is the initial amount, #r# the rate of interest, #n# the number of times compounded per annum, and #t# time in years.

Input:
#360(1+4/(100*4))^(4*18)#

#360(101/100)^(72)#

#360(2.0471)#

#$736.96# would be added to his initial investment of #$360,# so the investment is now worth #$1096.96#.