Problem
Question 8 of 9, Step 1 of 1 Correct Incorrect Juan invested $\$ 5200$ at $18 \%$ to be compounded quarterly. What will be the value of Juan's investment in 2 years? Round your. answer to the nearest cent. Note: Assume 365 days in a year and 30 days in a month. Answer Keypad How to enter your answer (opens in new window) Keyboard Shortcuts
Solution
Step 1 ：Given values are: Principal amount \(P = \$ 5200\), Annual interest rate \(r = 18 \% = 0.18\), Number of times interest is compounded per year \(n = 4\), Time in years \(t = 2\).
Step 2 ：Calculate future value using the formula \(A = P * (1 + r/n)^{n*t}\).
Step 3 ：Substitute the given values into the formula to get \(A = 5200 * (1 + 0.18/4)^{4*2}\).
Step 4 ：The value of Juan's investment in 2 years will be \$7394.92 after rounding to the nearest cent.
Step 5 ：So, the final answer is \(\boxed{\$7394.92}\).
