Calculate the maturity value of an investment of $22,500 after 9 months at 13.45%.
A) $20,438.29
B) $4,736.25
C) $2,269.69
D) $27,236.25
E) $24,769.69

Question

Quizplus · Accepted Answer

The maturity value of an investment is the future value of the investment at the end of the investment period. The future value can be calculated using the following formula:FV = PV * (1 + r/n)^(n*t)where:PV is the present value of the investmentr is the annual interest raten is the number of times per year that the interest is compoundedt is the number of yearsIn this case, the present value of the investment is $22,500, the annual interest rate is 13.45%, the interest is compounded monthly (n = 12), and the investment period is 9 months (t = 9/12). Substituting these values into the formula, we get:FV = 22,500 * (1 + 0.1345/12)^(12*9/12)= 22,500 * (1.1345)^9= 24,769.69Therefore, the maturity value of the investment is $24,769.69.

Calculate the Maturity Value of an Investment of $22,500 After