if XYZ invests 3,100 today and 3,100 in 1 year in an account that has an...
if XYZ invests 3,100 today and 3,100 in 1 year in an account that has an expected annual return of 16.8 percent, compounded quarterly, then how much money will she have in her account in 3 years?
Homework Answers
Future value = Present value *(1+rate)period
rate =16.8*3/12 i.e.4.2% qrtly
Period =3*4 i.e 12 for 1st contribution and 2*4 i.e.8 for 2nd
Future value =3100(1+4.2%)12+3100(1+4.2%)8 i.e. $9387.23 will have in year 3
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