Question

The future value of $200,000 invested at a 7% annual rate, compounded quarterly for 3 years is _____. (Do not round your intermediate calculations. Round the final answer to the nearest two decimal places.) $246,287.86 $111,365.78 $109,287.87 $222,252.19

Answer 1

$246,287.86

Step-by-step explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate = 7/4 = 1.75%

N = number of years = 4 x 3 = 12

$200,000( 1.0175)^12 = $246,287.86