Find the amount that results from the given investment 100 i

Find the amount that results from the given investment. $100 invested at 11% compounded quarterly after a penod of 3 years After 3 years. the investment results in $.

Solution

P=100 , r =11/100 =0.11 , t =3

quarterly => n =4

accumulated amount after t years A=P(1+(r/n))^nt

A=100(1+(0.11/4))^4*3

A=100(1.0275)¹²

A=138.48$

after 3 years ,the investment results in $138.48