Question

After 8 years, what is the total amount of a compound interest investment of $25,000 at 3% interest, compounded quarterly?

Responses

$25,377.11


$25,759.92


$26,148.50


$31,752.78

Answer 1

$31,752.78

Explanation:

F = P(1 + r/n)^(nt)

F = 25,000 × (1 + 0.03/4)^(4 × 8)

F = 25,000 × (1.0075)^32

F = 25,000 × 1.27011122

F = 31,752.78

Answer: $31,752.78