Find the amount that results from the given investment

Question

$700 invested at 2% compounded quarterly after a period of 3 1/2 years. After 3 1/2 years, the investment results in $__?

Answer 1

Compound interest:

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

 

David, just as the other problems you have posted which are

similar, plug the known values into the formula.  For quarterly

compounded interest n = 4 since the interest is compounded

4 times per year.

 

A = 700(1 + .02/4)^4(3.5)

 

A = $750.62