Find the amount that results from the given investment 700 i

Find the amount that results from the given investment. $700 invested at 8% compounded quarterly after a period of 4 years After 4 years, the investment results in $D (Round to the nearest cent as needed

Solution

FV = PV ( 1+i)^n

FV= future value

PV= present value

i= interest rate

n = number of years

n = 16, because there are 16 quarters in the four-year period

PV= $700

i=8%=0.08

n=16

FV= 700(1+0.08)^16

FV=700(3.426)

FV=$2398 (approx)