If $2940 is invested at 3.2% compounded quarterly, how much is in the account after 8 years?

Question

asked Feb 16, 2022 75.7k views

1 Answer

Cartman · Answer 1 · 2022-02-22T02:41:23+0000

Answer:

The future value is $3793.776

Explanation:

Given

PV = 2940 --- present value

$r = 3.2\%$ --- rate

t = 8 --- time

n = 4 --- quarterly

Required

Determine the future value

This is calculated using:

$FV = PV(1 + (r)/(n))^{nt$

So, we have:

$FV =2940 * (1 + (3.2\%)/(4))^{4*8$

$FV =2940 * (1 + (3.2)/(400))^{32$

$FV =2940 * (1 + 0.008)^{32$

$FV =2940 * (1.008)^{32$

FV =2940 * 1.2904

FV =3793.776