Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded quarterly, for 5 years. (Round your answer to the nearest cent.)

Answer 1

P = 10000(1+.09/4)^4(5) = 10,000(1.0225)^20 = $15,605.09 rounded to nearest cent

general formula is FV=Po(1+r/n)^nt where n = number of compounding periods per year, t = years, Po = original amount, r = annual interest rate, FV = Future Value