An investment is advertised as returning 3.1% every 3 months (quarterly), compounded quarterly. If $30,000 is invested, the growth can be modeled by the equation A(t) = 30,000(1.031)4t. What is the equivalent annual growth rate for this investment (rounded to the nearest hundredth of a percent) and what is it worth (rounded to the nearest thousand dollar) after 15 years?

Hint: Find the value of 1.0314 on your calculator.

12.99% and $187,000
12.47% and $173,000
7.82% and $187,000
9.37% and $43,000

Question

An investment is advertised as returning 3.1% every 3 months (quarterly), compounded quarterly. If $30,000 is invested, the growth can be modeled by the equation A(t) = 30,000(1.031)4t. What is the equivalent annual growth rate for this investment (rounded to the nearest hundredth of a percent) and what is it worth (rounded to the nearest thousand dollar) after 15 years?

Hint: Find the value of 1.0314 on your calculator.

 12.99% and $187,000
 12.47% and $173,000
 7.82% and $187,000
 9.37% and $43,000