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Mike deposits $125,000 today into an investment account which pays 6% compounded quarterly.  How much will Mike...

Mike deposits $125,000 today into an investment account which pays 6% compounded quarterly.  How much will Mike have in his account after 20 years?

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Answer #1
Future value FV= PV * (1+rs/m)^mN
Present value PV=                              125,000
Stated rate of interest rs= 6.00%
Number of years N= 20
Frequency of compounding per year m= 4
Future value FV= 125000 *(1+ 0.06/4)^(20*4)
FV=                    411,332.8484

Amount in 20 years is $411,332.85

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