Question

Use the future value formula to compute the total amount of the investment.
$4000 for 1 year at 5% compounded quarterly
The amount in the account after 1 year is $_____

Answer 1

sooo, what is the future value formula that youneed to use?

Answer 2

I don't know

Answer 3

well, they come in different flavors, so knowing which one its asking you to use would be helpful

Answer 4

FV = PV(1+i)^n <- normal equation
FV = PV(1+ (i/4))^n(4) <- quarterly

so its
FV = 4000( 1 + 0.05/4)^1(4)
FV = 4000(1+ 0.0125)^4
FV = 4000(1.0125)^4
FV = 4000(1.05095) = $4203.78

Answer 5

Thanks

Answer 6

np glad to help