Find the future value if $4200 is invested for 2 years at an annual rate of 11% compounded quarterly. Round your answer to the nearest cent.
A) $4,681.41
B) $4,434.18
C) $5,508.93
D) $5,816.09
E) $5,218.00

Question

Find the future value if $4200 is invested for 2 years at an annual rate of 11% compounded quarterly. Round your answer to the nearest cent. ​
A) $4,681.41
B) $4,434.18
C) $5,508.93
D) $5,816.09
E) $5,218.00

Quizplus · Accepted Answer

The future value is calculated using the formula for compound interest: $ FV = P(1 + \frac{r}{n})^{nt} $. Here, $ P = 4200 $, $ r = 0.11 $, $ n = 4 $, and $ t = 2 $. Plugging in these values, $ FV = 4200(1 + \frac{0.11}{4})^{4 \times 2} = 4200(1.0275)^8 \approx 5218.00 $.

Find the Future Value If $4200 Is Invested for 2