Question

Hello could you please help me with question number 8?

Answer 1

Remember that

The compound interest formula is equal to

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

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

P=$1,200

r=5.75%=0.0575

n=4

t=7 years

substitute the given values in the formula

`A=1,200(1+(0.0575)/(4))^(4\cdot7)`

A=$1,789.54