Amount invested = $100
Interest rate = 6% compounded quarterly
Since, interest rate is compounded quarterly, we have to divide the interest rate by 4.
Adjusted interest rate (i) = 6/4 = 1.5%
Time period = 10 years
Since, interest rate is compounded quarterly, we have to multiply the time period by 4.
Adjusted time period (n) = 10 * 4 = 40
Calculate the value at the end of the 10th year -
Value = Amount invested(F/P, i, n)
Value = $100(F/P, 1.5%, 40)
Value = $100 * 1.8140
Value = $181.40
Thus,
It is worth $181.40 at the end of the 10th year.
E&-29 Future Equivalen when Iterstls Compounded Quarery Suppose that a S100 lmp-sum amount sinvesed fo eas...
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