Find the future value if $4,200 is invested for 6 years at an annual rate of 9% compounded quarterly.
A) $9,072.00
B) $4,799.87
C) $7,043.82
D) $7,122.70
E) $7,164.22

Question

Find the future value if $4,200 is invested for 6 years at an annual rate of 9% compounded quarterly. ​
A) $9,072.00
B) $4,799.87
C) $7,043.82
D) $7,122.70
E) $7,164.22

Quizplus · Accepted Answer

We have:
- Present value (PV) = $4,200
- Number of years (n) = 6
- Annual interest rate (r) = 9%
- Compounding frequency (m) = quarterly = 4 times per year

To find the future value (FV), we can use the formula:
FV = PV*(1 + r/m)^(n*m)

Substituting the values, we get:
FV = $4,200*(1 + 0.09/4)^(6*4) = $7,164.22 (rounded to the nearest cent)

Therefore, the best choice is E.

Find the Future Value If $4,200 Is Invested for 6