14) Christopher invests $400 today at a 4% annual rate of return which is compounded quarterly....

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Answer 1

Answer #1

Rate = 4% / 4 = 1%

Number of periods = 40 * 4 = 160

future value = Present value (1 + r)ⁿ

future value = 400 (1 + 0.01)¹⁶⁰

future value = 400 * 4.913826

future value = $1,965.53

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Answer 2

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