Answer:
$81.03
Step-by-step explanation:
Given
--- annually
--- time
--- rate
---- Present value
Required
The future value
This is calculated as:
This gives:
<em>The future value to the nearest cent is: $81.03</em>
What is the solution to this equation?
2 answers:
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Answer:
C) $10,000 invested at 6.7% compounded quarterly over 7 years yields the greater return.
Step-by-step explanation:
-We determine the effective interest rate in both scenarios and use it to calculate the investment's value after 7 years.
#Given n=7yrs, P=$10,000 and i=6.6% compounded monthly:
#Given n=7rs, P=10000, i=6.7%
Hence, the investment has the largest value($15,921.75) when the interest rate is compounded quarterly.