Calculate the future value of P8,000 earning 9 Interest, compounded quarterly, for 11 years

Finance Jan 04, 2021

Calculate the future value of P8,000 earning 9 Interest, compounded quarterly, for 11 years. Round to the nearest centavo. P13,005.41 P21,294.92 OP20,643.41. O P21,069.22

Expert Solution

Future value = Present value * (1+Interest rate)^Number of periods

Interest rate per quarter = Annual rate / Number of compounding

= 9%/4

= 2.25%

Number of periods = Number of compounding * Nnumber of years

= 4 * 11

= 44

Future value = 8000 * (1+2.25%)^44

= 8000 * 1.0225^44

= 21294.92

Future value = $21294.92

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