Calculate the future value of an investment of $3,500, after one year, if it is deposited in a savings account that is compounded quarterly at an annual rate of 11%. Round your answer to the nearest cent.
A)$3,900.00
B) $4,100.95
C) $4,235.00
D) $3,901.17
E) None of these

Question

Calculate the future value of an investment of $3,500, after one year, if it is deposited in a savings account that is compounded quarterly at an annual rate of 11%. Round your answer to the nearest cent. ​
A)$3,900.00
B) $4,100.95
C) $4,235.00
D) $3,901.17
E) None of these

Quizplus · Accepted Answer

The future value is calculated using the formula for compound interest: FV = P(1 + r/n)^(nt), where P = $3,500, r = 0.11, n = 4, and t = 1. Plugging in these values gives FV = $3,500(1 + 0.11/4)^(4*1) = $3,901.17.

Calculate the Future Value of an Investment of $3,500, After