Kayla hopes to purchase a new car in five years.If she deposits $10,000 today in an account that pays 7% compounded quarterly,how much will she be able to spend on the new car in five years?
A) $14,025.52
B) $10,700.00
C) $14,147.78
D) $13,500.00
E) $15,000.00

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc24_643f_a768_0d1cd680a825_TB2902_00 FV = 10,000 × (1.0175 11ea7fdb_fc24_6440_a768_0dd2013b517a_TB2902_00 = $14,147.78
Using a financial calculator:
N = 20, I/Y = 1.75, PV = -10,000, PMT = 0, cpt FV = $14,147.78

Kayla Hopes to Purchase a New Car in Five Years