Your brother has asked you to help him with choosing an investment. He has $6,500 to...

Your brother has asked you to help him with choosing an investment. He has $6,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0400 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places.

Solutions

Expert Solution

Value in two years is calculated using the FV function as follows:-

=FV(rate,nper,pmt,pv)

=FV(0.04/4,2*4,,-6500)

=7038.57

jeff jeffy answered 2 years ago

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