Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4) You have deposited $42,000 into...

Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4)

You have deposited $42,000 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of seven years?

$50,911.29

$72,730.41

$58,184.33

$87,276.49

$58,184.33

$87,276.49

Solutions

Expert Solution

Quarterly Compounding implies that the interest is compounded 4 times per year i.e. once in every 3 months.

For calculation of Future value of deposit of $42,000 for seven years at the rate of 8% compounded semi annualy, refer the attached image.

jeff jeffy answered 1 year ago

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