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Calculate the future value of the $9,000 earning 9% interest compounded quarterly for 8 years round answer to two decimal places

User Tashonda
by
5.1k points

1 Answer

2 votes

Compound interest formula:

A = P (1 + r/n )^nt

Where:

A = future vale

P= Principal investment = 9,000

r = interest rate in decimal form = 9/100 = 0.09

n = number of compounding periods = 4

t = years = 8

Replacing:

A = 9000 ( 1 + 0.09/4)^ (4*8)

A = 9000 (1.0225)^32

A= 18,342.93

The future value is $18,342.93

User Brett Rossier
by
5.5k points
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