To calculate the future value of an amount that is invested at 12%,compounded quarterly,at the end of three years,the interest factor used would be
A)1% for 12 periods.
B)3% for four periods.
C)3% for 12 periods.
D)12% for three periods.

Question

Quizplus · Accepted Answer

To calculate the future value with quarterly compounding for 3 years (12 quarters) at 12% interest rate, we need to use the interest factor for 3% (12%/4) for 12 periods. Therefore, the correct answer is C.

To Calculate the Future Value of an Amount That Is