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3 years ago

Question 5 Unsaved

Mathematics

1 answer:

Otrada [13]3 years ago

3 0

We can use the compound interest formula

F=P(1+i)^n

where

F=Future value of investment to be found

P=present value of investment ($1000)

i=interest per period (1/4 year)=0.04/4=0.01

n=number of periods (3 years * 4 quarters = 12)

Substitute or "Plug in" values, so to speak,

F=1000*(1+0.01)^12

use a calculator to do the sum

=1126.83 (to the nearest cent, and use the proper rounding rules)

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