Find the future value if $3,300 is invested for 4 years at an annual rate of 7% compounded quarterly. Round your answer to the nearest cent.
A)$3,791.31
B)$3,537.13
C)$4,668.77
D)$5,004.26
E)$4,355.77

Question

Find the future value if $3,300 is invested for 4 years at an annual rate of 7% compounded quarterly. Round your answer to the nearest cent. ​
A)$3,791.31
B)$3,537.13
C)$4,668.77
D)$5,004.26
E)$4,355.77

Quizplus · Accepted Answer

The future value of an investment compounded quarterly can be calculated using the formula $FV = P(1 + \frac{r}{n})^{nt}$, where $P$ is the principal amount ($3,300), $r$ is the annual interest rate (7% or 0.07), $n$ is the number of times the interest is compounded per year (4 for quarterly), and $t$ is the time the money is invested for in years (4 years). Plugging in the values: $FV = 3300(1 + \frac{0.07}{4})^{4*4}$, which calculates to approximately $4,355.77.

Find the Future Value If $3,300 Is Invested for 4