Question

Find the future value of an account compounded quarterly at 5.67% for 4 years, if $7,000 was deposited into the account.​

Answer 1

`\bf\implies{8768.1}`

Explanation:

Step 1) : We know that,

`\begin{cases}P = 7000& \\r = 5.6 \% & \\ n = 4 & \\ t = 4 & \end{cases}`

Step 2) : Formulate and Substitute:

`Substitute\begin{cases}P = 7000& \\ r = 5.6 \% & into \: formula \\ n = 4 & \\ t = 4 & \end{cases}`

`\bf\longrightarrow{F = P * (1 + (r)/(n) )^((n*t))}`

Put the values according to the formula:

`\bf\longrightarrow{F = 7000 * (1 + ( (5.67)/(100) )/(4) )^((4*4))}`

Step 3) : Evaluate the equation/expression:

`\bf\longrightarrow{8768.1}`