Question

plz!!!! teach me fast :O...

Answer 1

Paul bought a 15-year treasury bond for a face amount of $600. The 2.5% interest will be compounded quarterly. What will the future value of Patrick's investment be when he goes to cash it in on the maturity date 15 years from now?

Answer 2

Use the formula


FV = PV(1+r/n)^(nt)


where PV = 600, r = 0.025, n = 4 and t = 15

Answer 3

So after plugging these values in, you'll get


FV = 600(1+0.025/4)^(4*15)


Evaluate the right side to find your answer