Question

What is the future value of $1800 invested today at 18% interest in 30 years with interest compounded quarterly?

A. $300,154.84
B. $9.15
C. $354,182.71
D. $258,067.15
E. $394,832.66

Answer 1

Future value of amount will be $354182.711

So option (C) will be the correct option

Step-by-step explanation:

We have given present value
`P=$1800`

Rate of interest r = 18 %

Time t = 30 years

As interest is paid quarterly so

Rate of interest
`r=(18)/(4)=4.5%`

And time period = 30×4 = 120

Future value is given by
`A=P(1+(r)/(100))^n=1800* (1+(4.5)/(100))^(120)=1800* 196.768=$354182.711`

So future value of amount will be $354182.711

So option (C) will be the correct option