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Dmitriy789 [7]
4 years ago
14

Karley's setting aside $32,000 each quarter, starting today, for the next three years for an expansion project. How much money w

ill the firm have at the end of the three years if it can earn an average of 5.45 percent on its savings
Business
1 answer:
Mashutka [201]4 years ago
8 0

Answer:

Final Value= $414,135.43

Explanation:

Giving the following information:

Quarterly deposit= $32,000

Number of quarters= 3*4= 12

Interest rate= 0.0545/4= 0.01363

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit

FV= {32,000*[(1.01363^12)-1]} / 0.01363

FV= $414,135.43

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