18
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Question 18 • 2025-2026 GSP Mathematical Reasoning for Decision Making

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years?

Answer
A
$11,964.17
B
$11,867.66
C
$9,338.56
D
$8,554.94

Explanation

For quarterly compounding, use A = P(1 + r/n)^(nt), where P = $7,650, r = 0.05, n = 4, and t = 9. This gives $7,650(1 + 0.05/4)^(4×9) = $7,650(1.0125)^36 ≈ $11,964.17. The accumulated value is $11,964.17, choice A.

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