An initial investment amount P, an annual interest rate r, and a time t are given. Find the future value of the investment whe
1 answer:
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Answer:
13.73%
Explanation:
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding = 365
= 0.1373 = 13.73%
Answer:
The correct answer is Future value with compound interest and $478.25.
Explanation:
According to the the scenario, the given data are as follows:
Present value (PV) = $400
Rate of interest = 6%
Rate of interest ( compounded quarterly) (rate) = 1.5%
Time period = 3 years
Time period ( compounded quarterly) ( Nper) = 12
So, we have to calculate Future value with compound interest because it is asking for a amount after 3 year.
So, we can calculate the future value by using financial calculator.
The attachment is attached below.
So, FV = $478.25
