Question 1004005: Find the amount that results from the investment.
$480 invested at 16% compounded quarterly after a period of 4 years
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! FV = final value
PV = present value (in this case it's 480)
r = interest (here it's 16%)
n = number of periods in a year (your problem says 4. Well, it says quarterly and there are 1/4+1/4+1/4+1/4= 4/4 four quarters)
t = time, the number of years
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FV= PV(1+r/n)^n*t
FV= 480(1+0.16/4)^4*4
FV= 480(1.04)^16
FV= 480(1.87)
FV= 897.60 is your final value, the amount you will have after 4 years.
J
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