SOLUTION: Marci invested $4000 in a fund that earns 9% annually and is compounded quarterly. How much will his investment be worth if left untouched for 6 years?

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Question 1133332: Marci invested $4000 in a fund that earns 9% annually and is compounded quarterly. How much will
his investment be worth if left untouched for 6 years?
Found 2 solutions by ikleyn, rothauserc:
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.
Future value FV = 4000%2A%281%2B0.09%2F4%29%5E%284%2A6%29 = 6823.07 dollars.


Answer by rothauserc(4718) About Me  (Show Source):
You can put this solution on YOUR website!
The compound interest formula is
:
A = P * (1 +r/n)^(t*n), where P is the principle to be invested, r is the rate, n is the number of times the interest is compounded per year, t is time in years and A is the amount after the time plus interest
:
A = 4000 * (1 +0.09/4)^(6*4) = 6823.0663 is approximately 6823.07
:
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The investment is worth $6823.06 after 6 years
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