No, the correct answer should be rounded to the nearest cent. The final amount of the investment after 27 years, compounded quarterly, can be calculated using the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = final amount
P = principal investment amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
Plugging in the given values, we have:
A = 15000(1 + 0.034/4)^(4*27)
Calculating this expression would give us:
A ≈ $37,558.73
Therefore, the correct answer when rounded to the nearest cent is $37,558.73.
Chris invests $15,000 in a retirement account with an annual interest rate of 3.4%. Find the final amount of the investment after 27 years if interest is compounded quarterly.
Round the answer to the nearest cent.
Would 37,558.7258768 be correct?
3 answers
Thank you so much
You're welcome! If you have any more questions, feel free to ask.