Question 14 \( 0 / 3 \) pts 3 98 Details Suppose you could make a single "lump sum" deposit of \( \$ 4710 \), in an investment that provides an Annual Percentage Rate(APR) of 4\% compounded quarterly. Determine the Future Value(FV) of the investment after 20 years. \( \square \) Submit Question

When you make a lump sum deposit of $4,710 at an annual percentage rate (APR) of 4% compounded quarterly, you can use the future value formula: \[ FV = P \left(1 + \frac{r}{n}\right)^{nt} \] Where \(P\) is the principal amount ($4,710), \(r\) is the annual interest rate (0.04), \(n\) is the number of times that interest is compounded per year (4), and \(t\) is the number of years the money is invested (20). Plugging in these values leads to a lucrative FV, showcasing how compounding can significantly grow your investment over time! In real life, understanding how compound interest works can change your financial future. For instance, many people start investing for retirement, and even a modest initial sum like $4,710 can snowball into a significant nest egg after 20 years! So, consider starting your own investment journey early; the money you put in now can pay off big time later on, thanks to the power of interest working in your favor!