Question

If ​$14,000 is invested at 4​% compounded quarterly​, what is the amount after 8 ​years?

The amount after 8 years will be ​

Answer 1

The amount after 8 years is $19249.17

Explanation:

For any calculation for investments there si the compound interest formula:

`A=P(1+(r)/(n) )^(n*t)`

Where

P = principal amount (the initial amount you borrow or deposit)

r = annual rate of interest (as a decimal)

t = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year

So for this example

P, the original amount ($14000)

r, 4%

t, 8 years

A, the amount after 8 years

n, 4, due that is quarterly

`P=$14000(1+((4/100)/(4)))^(4*8)\\\\P= $19249.17`