c. You put $2,750 into an account earnings 4% interest compounded QUARTERLY. How much will be in this account at the end of 4 YEARS? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)?
c. You put $2,750 into an account earnings 4% interest compounded QUARTERLY. How much will be in this account at the end of 4 YEARS? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Need D and C
please use IT-84 calculator
what is
N = I%= PV= PMT=FV= What are we solving for?
Thank you
Expert Solution
Step 1
Solution c:
Amount invested (PV) = $2,750
Quarterly interest rate (I) = 4%/4 = 1%
Nos of quarterly periods (N) = 4*4 = 16
Future value (FV) = P * (1+i)^n = $2,750 *(1+0.01)^!6
= $2,750 * 1.172579
= $3,225
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