Question

Determine the proceeds of $15 000 three years and three months before the due date if interest is 7.6% compounded quarterly. a) $12 125.29 b) $10 744.43 c) $10961.34 d) $11 744.29

Answer 1

The proceeds of $15,000 three years and three months before the due date with an interest rate of 7.6% compounded quarterly is $18,953.55.

Step-by-step explanation:

To determine the proceeds of $15,000 three years and three months before the due date with an interest rate of 7.6% compounded quarterly, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:
A = Total amount (proceeds)
P = Principal (initial amount)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years

Plugging in the values, we get:

A = $15,000(1 + 0.076/4)^(4(3 + 3/12))

A = $15,000(1.019)^13

A = $15,000 * 1.263570

A = $18,953.55

Therefore, the proceeds of $15,000 three years and three months before the due date is $18,953.55.