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Homework answers / question archive / What is the future value of $5,900 invested for 8 years at 5 percent compunded quarterly? Select one: a $8,196 b
What is the future value of $5,900 invested for 8 years at 5 percent compunded quarterly? Select one: a $8,196 b. $97,779.70 c. $8,170.40 d.$8,779.97
The future value is computed as shown below:
= Present value x (1 + interest rate) time period
= $ 5,900 x (1 + 0.05 / 4) 8 x 4 (Since the interest is compounded quarterly, hence interest rate is divided by 4 and time period is multiplied by 4)
= $ 5,900 x 1.012532
= $ 5,900 x 1.488130509
= $ 8,779.97
