Question

Find the accumulated value of $ 740 at the end of 7 years using a nominal annual rate of interest of 6 % compounded quarterly.

Answer 1

$1122.74

Step-by-step explanation:

We are to find the future value of $740

The formula for calculating future value:

FV = P (1 + r/m)^nm

FV = Future value

P = Present value

R = interest rate = 6

N = number of years = 7

m = number of compounding = 4

$740 x (1 + 0.06/4)^7x4 = $1122.74