Calculate the maturity value of $18,559 after 7.5 years at 9% compounded quarterly.
A) $36,179
B) $31,086
C) $32,000
D) $53,776
E) $29,000

Question

Quizplus · Accepted Answer

The correct answer is A because the maturity value of $18,559 after 7.5 years at 9% compounded quarterly is $36,179. This can be calculated using the formula:FV = PV * (1 + r/n)^(n*t)where:FV is the future valuePV is the present valuer is the annual interest raten is the number of times per year that the interest is compoundedt is the number of yearsIn this case, PV = $18,559, r = 9%, n = 4 (since the interest is compounded quarterly), and t = 7.5. Plugging these values into the formula, we get:FV = $18,559 * (1 + 0.09/4)^(4*7.5)= $18,559 * (1.0225)^30= $36,179

Calculate the Maturity Value of $18,559 After 7