Question

(a) find and (b) interpret the future value of the given amount. $5,200 at 6 3/4% compounded quarterly for 8 1/2 years

Answer 1

(a)

`5200 {(1 + (.0675)/(4)) }^(4 * 8.5) = 9185.46`

(b)

If I invest $5,200 at 6.75 percent compounded quarterly for 8 1/2 years, I will have $9,185.46.