Question

What will be the amount accumulated by each of the Given present investment.

(a) $3,000 in 8 years at 12% Compounded Quarterly.

Answer 1

Given,

Investment = $3,000

Time = 8 years

Interest rate = 12%

Here, we have to find the value(after 8 years) So we can use the following formula:-

F = P (1 + i)ⁿ

Where,

F = Future value

P = present investment = $3,000

n = Time = 8years = 8 * 4 = 32

r = Rate of interest = 12% / 4 = 3% Quarterly = 0.03

Substuting the respective value in the formula

F = P ( 1 + i)ⁿ

F = $3,000 (1 + 0.03)³²

F = $3,000 * (1.03)³²

F = $3,000 * (2.5750827557)

F = 7,725.2482

So the answer is 7,725.2482