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You deposit $6000 in an account earning 6% interest compounded quarterly. How much will you have in the account in 15 years? Round your answer to the nearest cent.

1 Answer

3 votes

Explanation:

The formula to calculate the future value of a present value deposit with compounding interest is:

FV = PV × (1 + r/n)^(n*t)

Where:

PV = Present Value (the initial deposit)

r = Annual interest rate (as a decimal)

n = Number of compounding periods per year

t = Number of years

Using this formula, we can calculate the future value of the $6000 deposit after 15 years:

PV = $6000

r = 6% = 0.06

n = 4 (compounded quarterly, i.e. 4 times per year)

t = 15 years

FV = $6000 × (1 + 0.06/4)^(4*15)

FV = $6000 × 1.458^60

FV = $6000 × 6.2565

FV = $37,539.00

Therefore, the future value of the $6000 deposit after 15 years with quarterly compounding at 6% interest rate is $37,539.00.

answered
User Titaniumdecoy
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