Solve the problem.
-Suppose you contribute $75 per quarter into a fund that earns 14.4% annual interest. What is the value of your investment after 12 years?
A) $12,081.74
B) $7434.92
C) $9293.65
D) $16,728.57

Question

Quizplus · Accepted Answer

The investment is compounded quarterly, so the interest rate per period is 14.4%/4 = 3.6%. The number of periods is 12 years * 4 = 48 quarters. Using the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r, where P = $75, r = 0.036, and n = 48, the future value is approximately $9293.65.

Solve the Problem. -Suppose You Contribute $75 Per Quarter into a Fund That