Answer:
$1,128.75
Step-by-step explanation:
Use Future value formula ; FV= PV (1+r)^t
- Amount invested ; the PV = 770
- rate ;r = 3.2%, however, it's compounded quarterly and the quarterly rate becomes (3.2% / 4 ) = 0.8%
- Total duration; t = 12 years, converted to quarters = 12*4 = 48
Next, plug in the numbers into the FV equation;
FV= 770*(1+0.008)^48
FV = 770* 1.46590404
FV = 1,128.746
Therefore, Lucy would have $1,128.75 in the account after 12 years.
