Question

Your 6 1/4 year investment of $40000 at 14% compounded quartly is worth how much now

Answer 1

yee

alrighty, da equation is


`A=P(1+(r)/(n))^(tn)`
where
A=future amount
P=present amount or principal
r=rate in decimal
n=number of times per year it is compounded
t=time in years

given
principal=40000=P
r=14%=0.14
n=4 (quarterly is 4 times a year)
t=6 and 1/4 or 6.25

so


`A=40000(1+(0.14)/(4))^((6.25)(4))`

`A=40000(1+0.035)^(25)`

`A=40000(1.035)^(25)`
use your calculator
A=94529.79937
round to nearest cent
A=$94529.80

it is worth $94529.80 in 6 and 1/4 years