William puts $8,000 in the bank today. The quoted interest rate is 8%, and the bank...

William puts $8,000 in the bank today. The quoted interest rate is 8%, and

the bank compounds interest quarterly. If William makes no further deposits, how

much will he have at the end of 9 years? (to the nearest dollar)

a. $13,760

b. $16,319

c. $10,146

d. $15,992

Please show the process

Solutions

Expert Solution

	A/c balance after 9 years	PV×(1+r)^n

	Here,

1	Interest rate per annum	8.00%
2	Number of years	9
3	Number of compoundings per per annum	4
1÷3	Interest rate per period ( r)	2.00%
2×3	Number of periods (n)	36
	Present value (PV)	$ 8,000

	A/c balance after 9 years	$ 16,319
		8000*(1+2%)^36

jeff jeffy answered 1 year ago

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