Assume that on 1 January 2015 you deposited $1,000 into a savings account that pays 8%...
Assume that on 1 January 2015 you deposited $1,000 into a savings account that pays 8% p.a. If the bank compounds interest quarterly, how much will you have in your account on 1 January 2018?
a.
$1,301.15
b.
$1,349.13
c.
$1,372.79
d.
$1,483.09
e.
$1,268.24
Homework Answers
FV = Amount Deposited * (1 + r)n
= $1,000 * [1 + (0.08/4)](3*4)
= $1,000 * 1.2682 = $1,268.24
So, Option "e" is correct.
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