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