Final answer:
The maturity value of P12,000 invested for 4 years at 15% interest compounded quarterly would be 21626.73.
Step-by-step explanation:
To calculate the maturity value of P12,000 invested for 4 years at 15% interest compounded quarterly, we use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for, in years.
Given that P is P12,000, r is 15% or 0.15, n is 4 (since the interest is compounded quarterly), and t is 4 years, we calculate the following:
A = 12000(1 + 0.15/4)^(4*4)
A = 12000(1 + 0.0375)^(16)
A = 12000(1.0375)^(16)
A = 12000(1.8738)
A = 21626.73
The maturity value of the investment will be 21626.73