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$480 invested at 15% compounded quarterly after a period of six years

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Answer: $1161

Step-by-step explanation: The equation for compound interest is A=P(1+r/n)^n*t. P is the principal, in this case, being $480 originally invested, r is the rate, in this case being 15% or 0.15, and n is 4 because it is compounded quarterly. t is 6 because the period invested is 6 years. A=480(1+0.15/4)^4*6. This can simplify to 480(1.0375)^24, which equals approximately $1161 dollars. If the question requires to the tenths, it is $1161.3, and for the hundredths, $1161.33.

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User Mark Estrada
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