Michaela is supposed to pay $15,000 to Mahmoud, but due to financial constraints, has to be delayed by on quarter. Determine the future amount if the rate of interest is 11.45%
A) $14,618.43
B) $14,727.31
C) $15,429.38
D) $15,631.42
E) $17,727.66

Question

Quizplus · Accepted Answer

The future amount can be calculated using the formula for compound interest: Future Value = Present Value * (1 + rate)^n. Here, the present value is $15,000, the rate is 11.45% annually (or 0.1145), and n is 0.25 (one quarter). The calculation is: $15,000 * (1 + 0.1145)^(0.25) = $15,429.38.

Michaela Is Supposed to Pay $15,000 to Mahmoud, but Due