Answer:
- P = 6000
- r = 0.059
- n = 4
- $10164.30
Explanation:
Given that $6000 is deposited into an account earning 5.9% compounded quarterly, you want the values of P, r, n used in the future-value formula, and you want the value after 9 years.
(A) Formula values
The problem statement tells you the values:
amount deposited = P = 6000
interest rate = r = 5.9% = 0.059
compounding periods in a year = n = 4
(B) Future value
Using these numbers in the formula, you find (with t=9) ...
S(9) = 6000(1 +0.059/4)^(4·9) ≈ $10164.30