Question

Problem 9-31 Quarterly compounding (LO5) Beverly Hills started a paper route on January 1. Every three months, she deposits $350 in her bank account, which earns 8 percent annually but is compounded quarterly. Four years later, she used the entire balance in her bank account to invest in an investment at 10 percent annually. points eBook How much will she have after three more years? Use Appendix A and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Hint Print Future value References

Answer 1

A/c balance after 4 years Px[(1+r)An-1]r Here, A Interest rate per annum 8.0% B Number of years CNumber of payments per per annum A-C Interest rate per period (r) BxC Number of periods (n) Payment per period (P) 4 4 2.00% 16 350 A/c balance after 4 years 6,523.75 350x((1+2%)A16-1)-2%

Future value PVx(1+r)An Here, AInterest rate per annum 10.00% B Number of years CNumber of compoundings per per annum A C Interest rate per period (r) BxC Number of periods (n) Present value (PV) 3 1 10.00% 3 $ 6,523.75 $ 8,683.11 |Future value 6523.75x(1+10%)^3|

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