Question

what will an account be worth if a person invested 1,700 at 8% fot 4 years compounded quar

Answer 1

There are 4quarters in a year comprising of 3 months each .

quarterly rate= 8/4 = 2% per quarter

number of quarters= 4years* 4 quarters in a year =16

Value in 4 years = Amount invested (1+i)^n

                = 1700 (1+.02)^16

                = 1700 * (1.02)^16

               = 1700 * 1.37279

             =$ 2333.74   (rounded to 2334)