Question

You are given the principal, the annual interest rate, and the compounding period. Determine the value of the account at the end of the specified time period. Round to two decimal places.

P = $20,000; r = 2.31%; quarterly; t = 4 years

Answer 1

$21,930.24?

Answer 2

So for this one you use the same equation in that last problem:
FV=PV(1+(rate/compounding periods per year))^(years*compounding periods per year)

Since quarterly means 4 compounding periods per year, we plug in the values and get this:
FV=($20,000)(1+(.0231/4))^(4*4)=$21,930.24

Answer 3

yep you got it

Answer 4

before i did haha

Answer 5

haha oops. :)

Answer 6

i wanted to make sure to explain it though...

Answer 7

you did!

Answer 8

haha aright cool