Question

using the tables presented in your reading material,find the maturity value of a $1 at a compound interest rate of 9% over 4 periods.a.1.3859 b.1,4116 c.1,4641 d.1,4661

Answer 1

The value is 1 dollar.
With compound interest rate of 9% over 4 period.
=> 1 dollar * .09 = 0.0081
=> 1.0081 * 0.09= 0.090729
=> 0.090729 + 1.0081 = 1.098829
=> 1.098829 * .09 = 0.09889461
=> 1.098829 *+ 0.09889461  = 1.19772361
=> 1.19772361 * .09 = 0.1077951249
=> 1.19772361 + 0.1077951249 = 1.3055187349
Or 1.31