Find the future value.
-$3622 invested for 11 years at 4.6% compounded quarterly
A) $5990.28
B) $5973.27
C) $6001.80
D) $5940.14

Question

Quizplus · Accepted Answer

The future value of an investment compounded quarterly can be calculated using the formula $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (initial investment), $r$ is the annual interest rate (decimal), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. Plugging in the given values: $P = 3622$, $r = 0.046$, $n = 4$, and $t = 11$, we get $A = 3622(1 + \frac{0.046}{4})^{4*11}$, which calculates to approximately $5990.28.

Find the Future Value