Find the future value using future value formula. $602 at 5.5% compounded quarterly for 3 years

Question

I need help with this problem finding future value. Find the future value using future value formula. $602 at 5.5% compounded quarterly for 3 years

Answer 1

Hi Donisha,

 

The future value of a payment P at interest i per payment period for n periods is

 

FV = P * [(1+i)ⁿ - 1]/i

 

For your problem,

P = 602

i = 0.055 yearly/4 quarters = 0.01375

n = 3 years * 4 quarters = 12 payments

 

FV = 602 * [1.01375¹² - 1]/0.01375