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Find the future value$4013 invested for 9 years at 4.1% compounded quarterly.

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We are to find the future value

The future value can be calculated using


FV=PV(1+(r)/(100\alpha))^(n\alpha)

From the given information

PV = $4013

r = 4.1

n = 9 years

Since the investment is compounded quarterly then

α = 4

By substituting these values we get


FV=\text{ \$4013(1 }+(4.1)/(100(4)))^(9(4))

Simplifying the equation we get


\begin{gathered} FV=\text{ \$}4013(1\text{ }+(4.1)/(400))^(36) \\ FV=\text{ \$}4013(1\text{ }+0.01025)^(36) \\ FV=\text{ \$}4013(1.01025)^(36) \\ FV=\text{ \$}4013(1.44436) \\ FV=\text{\$}5793.17 \end{gathered}

Therefore,

The Future Value is $5793.17

User Farid Al Haddad
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