Please help me with this: Julia invested $875 at 2.8% compounded quarterly for 10 years. What is the amount of the investment at maturity?

Question

Julia invested $875 at 2.8% compounded quarterly for 10 years. What is the amount of the investment at maturity?

Answer 1

general formula for compound interest is:

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

where P = Principal amount invested= $875

A= ending Amount value

after t years=10

at r interest rate, r= 2.8% = 0.028

compounded n times per year, n=4

A = 875(1+.028/4)^4(10)

= 875(1.007)^40

= 1156.60982

= $1,156.61