James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly...

James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly if the amount is maintained for 3 years. How much will Cindy Henry have at the end of 3 years? (Round factor values to 5 decimal places, e.g. 1.25124. Round answers to the nearest whole dollar, e.g. 5,250.)

Expert Solution



Annual rate of interest is 8% ; interest compounded Quarterly
So Quarterly interest Rate = 8% /4 Quarters = 2%

Quarters	FVF of $ 1 @ 2%
0	1.00000
1	1.02000
2	1.04040
3	1.06121
4	1.08243
5	1.10408
6	1.12616
7	1.14869
8	1.17166
9	1.19509
10	1.21899
11	1.24337
12	1.26824

	Deposite Amount	PVF @ 9% in Eighth Year	Future Value
Future Value =	$ 19,000.00	1.26824	$ 24,097


Answer = $ 19,000 wil become $ 24,097 in three @ 8% compounded Quarterly

ekkarill92 answered 2 years ago

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