what is the total value of $1000 investment at 16% coumpounded quarterly for 4 years?

Answer 1

The interest is paid, and reinvested quarterly.

Each quarter they will receive 1/4th of 16%, or 4%

After the first quarter, the interest received will be 1000 x 0.04
And the balance + interest = 1000 x 1.04 = $1040

This all gets reinvested (ie, the interest is compound) so after the second quarter, balance + interest will stand at 1040 x 1.04

Repeat this for 4 years (16 times in total) and we obtain the formula:
1000 x 1.04^16
= $1,872.98

Answer 2

Because the interest is compounded quarterly (4 times a year), the interest rate per quarter is 16%/4 = 4%. There are (4x4) = 16 period s of interest. Therefore the answer is:

1000 x (1 + 4%) ^ 16 = $1872.98

The other answers above ignore the effects of compounding quarterly.

Answer 3

P=Po(1=r/n)^Yn
where r = interest rat, Y = no of years n = number of times compounded per year, and Po = ammoun strated with.

Thus P = 1000(1+ .16/4)^ 4*4 1000(1+1.04)^16= $1,872.98

Other answerers did not compound quarterly..

Answer 4

First you must adjust the interest rate to qtr interest rate by dividing 16 percent by 4 = 4 percent. Then the number of periods changes from 4 years to 16 quarters.

Future value = 1000* (1.04) ^16 = 1872.98

Answer 5

the principal P=$1000
nature of interest=compound interest
cycle=n=quarterly
annual rate of interest=R=16%
rate of interst per quarter=r=4
no of quarters (cycles) in 4 years=16
Amount=P(1+r/400)^n
plugging and chugging
A=1000(1+4/100)^16
=1000(1.04)^16
=$1810

Answer 6

Amount = Principle amount*(1+ 100% inventment)^number of terms


Amount = 1000*(1.16)^4 = 1810.64

Answer 7

=1000*1.16^4
=$1810

Answer 8

$1000 x (1.16)^4 = $1810.64

Answer 9

1000*((1.16)^(1/4))^(4*4)=1810.63936