Find the future value if $5000 is invested for 2 years at an annual rate of 10% compounded quarterly.
A) $\$$ 4000.00
B) $\$$ 6077.53
C) $\$$ 5253.12
D) $\$$ 6050.00
E) $\$$ 6092.01

Question

Quizplus · Accepted Answer

The future value is calculated using the formula for compound interest: $ FV = P(1 + \frac{r}{n})^{nt} $, where $ P = 5000 $, $ r = 0.10 $, $ n = 4 $, and $ t = 2 $. Plugging in these values gives $ FV = 5000(1 + \frac{0.10}{4})^{4 \times 2} = 5000(1.025)^{8} \approx 6092.01 $.

Find the Future Value If $5000 Is Invested for 2 $\$$