Find the future value and interest earned if $56,780 is invested at displaystyle{2.8}% compounded a) quarterly for 23 quarters b) continuosly for 15 year

Reggie

Reggie

Answered question

2020-10-26

Calculate the value and interest that would be earned if $56,780 is invested at 2.8% compounded a) quarterly for 23 quarters b) continuosly for 15 year

Answer & Explanation

joshyoung05M

joshyoung05M

Skilled2020-10-27Added 97 answers

Given, Present value, interest rate and time in quarterly are
PV=$56780
r=2.8% quarterly =0.028
t=23 quarterly
Part (a): The formula for Future value and interest are
FV=PV(1+r)tandIFVPV
PV= Present value
FV= Future value
I= Interest
r= rate quarterly
t= time in quarterly
The Amount is
FV=$56780(1+0.028)23
=$56780(1.028)23
=$56780(1.88730303)
=$107161.066
I=$107161.06656780
=$50381.066
Part (b): The formula for Future value and interest are
FV=PVenandI=FVPV
PV= Present value
FV= Future value
I= Interest
r= rate
t= time in years
The amount is
FV=$56780e0.028(15)
=$56780(1.521961556)
=$86416.97713
I=$86416.9771356780
=$29636.97713
Jeffrey Jordon

Jeffrey Jordon

Expert2021-10-27Added 2605 answers

Answer is given below (on video)

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