Question

Calculate the future value of $1,000,000, earning interest at a rate of 3% that is compounded quarterly for 4 years and 3 months

Answer 1

$7843137.255

Explanation:

1,000,000 is the interest

3% is the rate ( well have to change it to a decimal )

4 years and 3 months is time (we'll have to add the 3 months to the 4 years which is : 1/4 so 1/4 + 4 = 4.25 (the months is the decimal added to the years)

I=PxRxT

1,000,000=P(.03)(4.25)

1,000,000=P .1275

1,000,000/.1275=P .1275/.1275 ( the two numbers cancel each other out )

so your left with : 1,000,000/.1275 = P

which the answer is 7,843,137.255 = P

please let me know if you got it right, i tried my best :)

Answer 2

1,135,444.56

Explanation:

made a 100% on the posttest!!!!