Answer:
amount = $736.955
Explanation:
given data
principal = $360
interest rate = 4% per year = 0.04
time = 18 year
to find out
how much the investment
solution
we will apply here formula for amount that is express as
amount = principal × \((1 +\frac{r}{q})^{qt}\) ...........................1
here r is interest rate and t is time and q is quarterly compounding that is 4
so put here all value we get
amount = principal × \((1+ \frac{r}{q})^{qt}\)
amount = 360 × \((1+ \frac{0.04}{4})^{4*18}\)
amount = 360 × \((1.01)^{72}\)
amount = $736.955
