James Henderson deposited $19,000 in a money market certificate
that provides interest of 8% compounded quarterly...
Free
60.1K
Verified Solution
Link Copied!
Question
Accounting
James Henderson deposited $19,000 in a money market certificatethat provides interest of 8% compounded quarterly if the amount ismaintained for 3 years. How much will Cindy Henry have at the endof 3 years? (Round factor values to 5 decimal places,e.g. 1.25124. Round answers to the nearest whole dollar, e.g.5,250.)
Answer & Explanation
Solved by verified expert
4.4 Ratings (878 Votes)
Annual rate of interest is 8% ; interest compounded
Quarterly
So Quarterly interest Rate = 8% /4 Quarters =
2%
Quarters
FVF of $ 1 @ 2%
0
1.00000
1
1.02000
2
1.04040
3
1.06121
4
1.08243
5
1.10408
6
1.12616
7
1.14869
8
1.17166
9
1.19509
10
1.21899
11
1.24337
12
1.26824
Deposite Amount
PVF @ 9% in Eighth Year
Future Value
Future Value =
$
19,000.00
1.26824
$
24,097
Answer = $ 19,000 wil become $ 24,097 in three @ 8%
compounded Quarterly
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
