Keisha has $3,500 now and plans on investing it in a fund that will pay her 12% interest compounded quarterly.How much will Keisha have accumulated after 2 years?
A)$4,433.80
B)$4,340.00
C)$4,390.40
D)$3,920.00
E)$3,500.00

Question

Quizplus · Accepted Answer

Future Value = Present Value * Interest Factor
Future Value = $3,500 * 1.2668 = $4,433.80
1.2668 is the interest factor on the Future Value table; i = 12%/4 = 3%; n = 2*4 = 8

Keisha Has $3,500 Now and Plans on Investing It in a Fund