You wish to deposit $7,000 in an account at the Shylock Bank.The bank pays interest at a nominal annual rate of 10% compounded quarterly.What is the future value in the account after seven years?
A) $13,975.47
B) $13,641.02
C) $13,336.23
D) $14,726.68
E) $14,055.44

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc2a_0909_a768_7b62f4df8179_TB2902_00 FV = 7,000 × (1.025 11ea7fdb_fc2a_090a_a768_616f72f45487_TB2902_00 = $13,975.47
Using a financial calculator:
N = 28, I/Y = 2.5, PV = -7,000, PMT = 0, cpt FV = $13,975.47

You Wish to Deposit $7,000 in an Account at the Shylock