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Vladimir [108]
1 year ago
11

A man deposits $ 72,400 into a bank, which pays 12% interest that is compounded quarterly. What will he have in his account at t

he end of five years?
Business
1 answer:
prohojiy [21]1 year ago
4 0

The amount he will  have in his account at the end of five years is $130,762.45

What is the value of the amount he would have in 5 years?

The amount he would have in the account at the end of 5 years is the future value of the initial deposit of $72,400, in other words, the initial deposit plus the interest on principal and interest on earlier interest earned over the period of 5 years, which can be computed using the future value formula shown below:

FV=PV*(1+r/m)^(m*n)

FV=accumulated balance after 5 years=unknown

PV=initial deposit=$ 72,400

r/m=quarterly interest rate=12%/4=0.03

m=number of quarterly periods in a year=4

n=number of years that the deposit would last=5

m*n=4*5=20

FV=$72,400*(1+0.03)^20

FV=$130,762.45

Find out  more about future value on:brainly.com/question/1404347

#SPJ1

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