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Serggg [28]
3 years ago
6

Determine the future value of a $25000 investment at an annual rate of 4.85% compounded quarterly for 6 years.

Mathematics
1 answer:
Nutka1998 [239]3 years ago
3 0
 = $ 32,275.00

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4.85%/100 = 0.0485 per year,
putting time into years for simplicity,
24 quarters ÷ 4 quarters/year = 6 years,
then, solving our equation

A = 25000(1 + (0.0485 × 6)) = 32275 
A = $ 32,275.00

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 25,000.00
at a rate of 4.85% per year
for 6 years (24 quarters) is $ 32,275.00.
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