Answer:
$ 6,769.00
Step-by-step explanation:
The formula for calculating future values is as below. Future value is the balance that will be in the account at the end of a stated period.
FV = PV × (1+r)n
where
FV = Future Value
PV = Present Value: $5600
r = annual interest rate: 1.9
n = number of periods:10 years
In this case, the interest is compounded quarterly. They are four quarters in a year. Hence, the quarterly interest rate will be 1.9 divided by four, which is 1.9/4=0.475%
The time n is 10years. Each year has four compounds. 10 years will have 10 x 4 = 40.
FV= $5600 x ( 1+0.475%)40
FV= $5600 x (1+0.00475)40
Fv= $5600 x 1.20870576
Fv = $ 6,769.00