document.write( "Question 1190108: You invest $10,000 in Rapid Growth Funds, which appreciate by 5% per year, with yields reinvested quarterly. By how much (in dollars) will your investment have grown after 4 years? (Round your answer to the nearest cent.) \n" ); document.write( "
Algebra.Com's Answer #822228 by Theo(13342)![]() ![]() You can put this solution on YOUR website! the 5% interest rate per year is being compounded quarterly. \n" ); document.write( "the interest rate per quarter will be 5/4 = 1.25%. \n" ); document.write( "4 years * 4 quarters per year will b equal to 16 quarters/\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "if the interest rate is 1.25% per quarter, then the growth factor is equal to 1.0125 per quarter.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "the future value of he 10,000 will be equal to 10,000 * (1.0125) ^ 16 = 12198.89548.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "round to the nearest penny to get 12198.90.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "let me know if you have any questions.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "theo\r \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |