Chris invests $15,000 in a retirement account with an annual interest rate of 3.4%. Find the final amount of the investment after 27 years if interest is compounded quarterly. Round the answer to the nearest cent.(1 point) The final amount of the investment after 27 years is $.
We can use the compound interest formula to find the final amount of the investment:
A = P(1 + r/n)^(nt)
Where:
A = final amount of the investment
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
Plugging in the given values, we have:
A = 15000(1 + 0.034/4)^(4*27)
Calculating this expression, we find that the final amount of the investment after 27 years is approximately $39,206.86.
Rounded to the nearest cent, the final amount is $39,206.87.