Question

Juan invested $110,000, 10 years ago at 8% compound quarterly. how much has he accumulated?

use the MS Excel FV function ​

Answer 1

Below

Explanation:

The equation ( you need to commit to memory) is:

FV = PV ( 1+i)^n FV = future value PV = present value(110 000)

i = decimal interest per PERIOD = .08 /4 = .02

n = # of periods = 40 (it is a quarterly period by 10 yrs)

FV = 110 000 ( 1 + .02)^40 = 242 884 .36 dollars