7) Five thousand dollars is invested at an interest rate of 3.5% compounded quarterly. No money is deposited or withdrawn from the account. Using the formula below, determine,
to the nearest cent, how much this investment will be worth in 18 years. (A = amount,
P = principal, r= interest rate, n = number of times the interest rate compounded annually,
1 = time in years] [Show all work.]
A = P(1 + r/n)^nt

$9362.36

Step-by-step explanation:

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

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.