Answer:
the final amount for an investment of $900 earning 6% interest compounded quarterly for 15 years would be approximately $2,251.25
Explanation:
To calculate the final amount for an investment with compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case:
P = $900
r = 6% = 0.06 (in decimal form)
n = 4 (quarterly compounding)
t = 15 years
Let's plug these values into the formula and calculate the final amount:
A = 900(1 + 0.06/4)^(4*15)
A = 900(1.015)^(60)
A ≈ $2,251.25 (rounded to two decimal places)
Therefore, the final amount for an investment of $900 earning 6% interest compounded quarterly for 15 years would be approximately $2,251.25.