To calculate the future value of the investment, we can use the formula for compound interest, which is:

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

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $3350
r = 4% or 0.04
n = 4 (since the interest is compounded quarterly)
t = 17 years

Substituting these values into the formula, we get:

A = 3350 (1 + 0.04/4)^(4*17)

Now, calculate the expression in the parentheses:

1 + 0.04/4 = 1.01

So, the formula becomes:

A = 3350 * (1.01)^(4*17)

Now, calculate the exponent:

4*17 = 68

So, the formula becomes:

A = 3350 * (1.01)^68

Now, calculate the power:

(1.01)^68 ≈ 1.84467

So, the formula becomes:

A = 3350 * 1.84467

Finally, calculate the product:

A ≈ $6176.59

So, the $3350 invested at 4% compounded quarterly will be worth approximately $6176.59 after 17 years.

Question

To calculate the future value of the investment, we can use the formula for compound interest, which is:

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

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $3350
r = 4% or 0.04
n = 4 (since the interest is compounded quarterly)
t = 17 years

Substituting these values into the formula, we get:

A = 3350 (1 + 0.04/4)^(4*17)

Now, calculate the expression in the parentheses:

1 + 0.04/4 = 1.01

So, the formula becomes:

A = 3350 * (1.01)^(4*17)

Now, calculate the exponent:

4*17 = 68

So, the formula becomes:

A = 3350 * (1.01)^68

Now, calculate the power:

(1.01)^68 ≈ 1.84467

So, the formula becomes:

A = 3350 * 1.84467

Finally, calculate the product:

A ≈ $6176.59

So, the $3350 invested at 4% compounded quarterly will be worth approximately $6176.59 after 17 years.

Knowee AI · Accepted Answer

To calculate the future value of the investment, we can use the formula for compound interest, which is:

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

Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case:
P = $3350
r = 4% or 0.04
n = 4 (since the interest is compounded quarterly)
t = 17 years

Substituting these values into the formula, we get:

A = 3350 (1 + 0.04/4)^(4*17)

Now, calculate the expression in the parentheses:

1 + 0.04/4 = 1.01

So, the formula becomes:

A = 3350 * (1.01)^(4*17)

Now, calculate the exponent:

4*17 = 68

So, the formula becomes:

A = 3350 * (1.01)^68

Now, calculate the power:

(1.01)^68 ≈ 1.84467

So, the formula becomes:

A = 3350 * 1.84467

Finally, calculate the product:

A ≈ $6176.59

So, the $3350 invested at 4% compounded quarterly will be worth approximately $6176.59 after 17 years.

A newborn child receives a $3350 gift toward a college education. How much will the $3350 be worth in 17 years if it is invested at 4% compounded quarterly?The college fund will be worth $ after 17 years

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