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 can be calculated using the formula:FV = PV * (1 + r/n)^(n*t)where:PV is the present value ($18,559)r is the annual interest rate (9%)n is the number of times per year that the interest is compounded (4)t is the number of years (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= 18,559 * 1.9503= $36,179

Calculate the Maturity Value of $18,559 After 7