For each attle tollowing prablemf B. Stak the answer fothe questio sould like ts

Question

For each attle tollowing prablemf B. Stak the answer fothe questio sould like ts hak adown pe the purchase of a lbwe ho in d year she depsts $1,0o0 qua terlyin an account tnat pays S4S pe Compounaled quaterty. Lwhat doisn Pay hac in taa7 choices a.. Futuve ualue with Compound inteast b Present Value with compound iatt 4KIFlez C. Fusture velwe of an Annuity d. Present Value ot an Anneity z e. Futue Vale w/ sinpe ink d. 7,74372 eachof ooughta ne mechine and Semiannust 2 cv edit Union chernd a 23% een ter Com Pound d Semiannualy tor wa's te Purchese price ot e the machise 'Question-A. Ansecdhered a. Future Valweuth Compouns interest C-Futucualue of an Annu ti d . S1080.30 Resen. Value ot an AnAity

Explanation / Answer

1)

A) Future Value With Compound Interest

B) Solution :

Principal (P)= $1000 quarterly for 4 years = $16000

Rate = 5.45% p.a

Effective rate(r) = 5.45/4 %

Time = 4 years

Effective Time(t) = 4*4=16

Amount = P*((1+r/100)^t)

Amount = 16000*(1+5.45/400)^16

Amount = 1600*(1+0.0136)^16

Amount = $19248.18

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.