document.write( "Question 1103381: IF DON INVESTS $6000 AT 9% INTREST COMPOUNDED QUATERLY, FIND THE AMOUNT AFTER 7 YEARS \n" ); document.write( "

Algebra.Com's Answer #718092 by math_helper(2461) $\"\"$ $\"About$

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Compounded quarterly —> interest rate must be divided by 4.\r
\n" ); document.write( "\n" ); document.write( "The future value F is:
\n" ); document.write( " $\"+F+=+6000%2A%281%2B0.09%2F4%29%5E%287%2A4%29+\"$
\n" ); document.write( " $\"matrix%281%2C4%2C+%22F%22%2C+%22+=+%22%2C+%22%24%22%2C+11187.27%29+\"$ \r
\n" ); document.write( "\n" ); document.write( "You can sanity check future value problems by using the \"rule of 72\": it takes roughly '72 divided by the annual interest rate' years for money to double. Here the amount almost doubled in 7 years, and we'd expect it to double in about 72/9 = 8 years, so it passes the sanity check. \r
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