Present and future value tables of $1 at 3% are presented below: At the end of e

Question

Present and future value tables of $1 at 3% are presented below:

  

At the end of each quarter, Patti deposits $1,000 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in 3 years?

N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000      0.97087      1.0300      1.00000      2 1.06090 0.94260 2.0300      1.91347      2.0909      1.97087      3 1.09273 0.91514 3.0909      2.82861      3.1836      2.91347      4 1.12551 0.88849 4.1836      3.71710      4.3091      3.82861      5 1.15927 0.86261 5.3091      4.57971      5.4684      4.71710      6 1.19405 0.83748 6.4684      5.41719      6.6625      5.57971      7 1.22987 0.81309 7.6625      6.23028      7.8923      6.41719      8 1.26677 0.78941 8.8923      7.01969      9.1591      7.23028      9 1.30477 0.76642 10.1591      7.78611      10.4639      8.01969      10 1.34392 0.74409 11.4639      8.53020      11.8078      8.78611      11 1.38423 0.72242 12.8078      9.25262      13.1920      9.53020      12 1.42576 0.70138 14.1920      9.95400      14.6178      10.25262      13 1.46853 0.68095 15.6178      10.63496      16.0863      10.95400      14 1.51259 0.66112 17.0863      11.29607      17.5989      11.63496      15 1.55797 0.64186 18.5989      11.93794      19.1569      12.29607      16 1.60471 0.62317 20.1569      12.56110      20.7616      12.93794

Explanation / Answer

Quarterly interest rate = 12 * 3 /12 = 3%

Number of quarters in 3years = 3 *4 =12

Future value = Annual deposit * FVA@3%,12

                      = 1000 * 14.192

                       =$ 14192

patti will have $ 14192 at end of 3 years

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.