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Answer :
Final answer:
The future value of the investment after 5 years is approximately $4,788.62 and the interest earned is $1,188.62.
Explanation:
To calculate the future value and the interest earned, we can use the formula for compound interest:
Future Value = Principal × (1 + interest rate/number of periods)(number of periods × time)
Given that the principal is $3600, the interest rate is 8%, and the investment is for 5 years compounded quarterly, we can plug in these values into the formula to find the future value:
Future Value = $3600 × (1 + 0.08/4)(4 × 5)
Simplifying the expression, the future value is approximately $4,788.62.
Next, to find the interest earned, we subtract the principal from the future value:
Interest Earned = Future Value - Principal = $4,788.62 - $3600 = $1,188.62
Learn more about interest here:
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