Answer:
$24,412
Step-by-step explanation:
To find out the value after 9 years, we have to use Future value formula.
Here, Present Value (PV) = $18,000
Interest rate, r = 3.4% = 0.034
Since the interest is compounding quarterly, m = 4
years, n = 9
We know, FV = PV x [(1 + r/m)^(n*m)]
FV = $18,000 x [(1 + 0.034/4)^(9*4)]
FV = $18,000 x [(1 + 0.034/4)^(9*4)]
FV = $18,000 x 1.3562
FV = $24,412
Therefore, the future value is $24,412.
