Paige invested 1200 at an interest rate of 5.75% compounded quarterly. Determine the value of her investments in 7 years.

Sagot :

use the formula A=p(1+r)^n
where 
A= value of investment
r= rate
n= time period
p= amount invested
in this question 
r= 5.75% but compounded quarterly means divide this by 4
r= 23/1600
n=7*4
n=28
p= $1200
A=1200(1+23/1600)^28

A= $1789.54

Therefore the value of her investment in 7 years is $1789.54