Present and future value tables of $1 at 3% are presented below: FVA $1 $1 0.970

Question

Present and future value tables of $1 at 3% are presented below: FVA $1 $1 0.97087 1.91347 2.82861 FVAD $1 1.0300 PVAD $1 1.00000 1.97087 2.91347 3.82861 4.71710 1.03000 1.06090 1.09273 1.12551 1.15927 119405 1.22987 1.26677 1.30477 1.34392 1.38423 1.42576 1.46853 0.97087 0.94260 1.0000 2 3.0909 4.1836 5.3091 6.4684 76625 3.1836 4.3091 5.4684 6.6625 7.8923 4 0.88849 0.86261 0.83748 4.57971 6 6.23028 8 0.78941 0.76642 0.74409 0.72242 0.70138 0.68095 7.78611 8.53020 9.25262 9.95400 0.63496 11.29607 18.598911.9379419.1569 12.56110 10.4639 11.8078 13.1920 14.6178 6.0863 17.5989 8.01969 8.78611 9.53020 10.25262 0.95400 11.63496 12.29607 2.93794 11.4639 12.8078 14.1920 12 14 15 16 170863 1.55797 1.60471 0.64186 0.62317 20.7616 Today, Thomas deposited $170,000 in a 4-year, 12% CD that compounds quarterly. What is the maturity value O $272,801 O $190,400 $385130 $342,821

Explanation / Answer

We use the formula:

A=P(1+r/400)^4n

where

A=future value

P=present value

r=rate of interest

n=time period.

Hence

A=$170,000(1+12/400)^(4*4)

=$170,000*1.60471

=$272801(Approx).

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