Find the future value of an account compounded quarterly at 5.67% for 4 years, if $7,000 was deposited into the account.

Question

asked Oct 1, 2023 159k views

1 Answer

Mohoch · Answer 1 · 2023-10-05T19:12:04+0000

Step 1) : We know that,

$\begin{cases}P = 7000& \\r = 5.6 \% & \\ n = 4 & \\ t = 4 & \end{cases}$

Step 2) : Formulate and Substitute:

$Substitute\begin{cases}P = 7000& \\ r = 5.6 \% & into \: formula \\ n = 4 & \\ t = 4 & \end{cases}$

$\bf\longrightarrow{F = P * (1 + (r)/(n) )^((n*t))}$

Put the values according to the formula:

$\bf\longrightarrow{F = 7000 * (1 + ( (5.67)/(100) )/(4) )^((4*4))}$

Step 3) : Evaluate the equation/expression:

$\bf\longrightarrow{8768.1}$