uestion 7 (1 point) Minh invests 3500 in a plan that pays 4% annual interest, compounded quarterly, for 4 years. The amount of the investment at the end of the 4 years is A) 3790.00 B) 4804.75 C) 4104.03 D) 4100.81

## Step 1: Convert the annual interest rate to a quarterly rate.### The annual interest rate is 4%, so the quarterly interest rate is .## Step 2: Calculate the number of compounding periods.### The investment is compounded quarterly for 4 years, so the number of compounding periods is .## Step 3: Calculate the future value of the investment.### The formula for compound interest is , where is the future value, is the principal, is the interest rate per compounding period, and is the number of compounding periods. In this case, 3500 r = 0.01 n = 16 A = 3500(1 + 0.01)^{16} = 3500(1.01)^{16} \approx 3500(1.17257864) \approx 4104.02524$.