Which column (i)and row (n)would you use from a present value or future value table for 8% interest compounded quarterly for 6 years?
A)(i)= 2%,(n)= 8
B)(i)= 8%,(n)= 6
C)(i)= 2%,(n)= 24
D)(i)= 4%,(n)= 12
E)(i)= 4%,(n)= 24

Question

Quizplus · Accepted Answer

For quarterly compounding at 8% interest over 6 years, we need to use the row with n=24 (since 4 quarters in a year x 6 years = 24 quarters) and the column with i=2% (since 8%/4 = 2%). Choice C matches this criteria.

Which Column (I)and Row (N)would You Use from a Present