Question

B - Find the future value of a $1000 deposit in three years if the APR...

B - Find the future value of a $1000 deposit in three years if the APR is 8% compounded quarterly. Fill in the blanks below.
Rate ?
N ?
PMT ?
FV ?
Type ?
PV ?
0 0
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Answer #1

Rate =8%/4 =2%

N =3*4 =12

PMT =0

FV =1268.24

Type =0

PV =-1000

In excel FV is calculated as:

=FV(rate,n,pmt,pv,type)

=FV(8%/4,3*4,0,-1000,0)

=1268.24

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