Question 62744
<b>Suppose $2500 is invested at 4% interest, compounded quarterly. How much is the investment worth after 6 years? Round your answer to the nearest cent. </b>

4% over 1 year = 1% per quarter.
6 years = 6*4 = 24 quarters.

The value of the investment after 24 quarters at 1% per quarter =
{{{2500*(1.01^24)}}}.
Do this on a calculator and you get {{{2500*1.2697346}}} = {{{highlight(3174.34)}}}.