Present and future value tables of $1 at 3% are presented below: 1 1.03000 0.970

Question

Present and future value tables of $1 at 3% are presented below: 1 1.03000 0.97087 1.00000.97087 1.0300 1.00000 2 1.06090 0.94260 2.03001.91347 2.09091.97087 3 1.09273 0.91514 3.09092.82861 3.1836 2.91347 4 1.12551 0.88849 4.18363.71710 4.3091 3.82861 5 1.15927 0.86261 5.30914.579715.4684 4.71710 6 1.19405 0.83748 6.46845.41719 6.6625 5.57971 7 1.22987 0.813097.66256.230287.8923 6.41719 8 1.26677 0.78941 8.89237.01969 9.1591 7.23028 9 1.30477 0.76642 10.15917.78611 10.4639 8.01969 10 1.343920.74409 11.46398.53020 11.80788.78611 11 1.384230.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.19209.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.086311.29607 17.5989 11.63496 15 11.55797 10.64186 | 18.5989 |11.93794 | 19.1569 12.29607 16 1.604710.62317 20.1569 12.56110 20.7616 12.93794 Today, Thomas deposited $130,000 in a 4-year, 12% CD that compounds quarterly. what is the maturity value of the CD?

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=$130,000(1+12/400)^(4*4)

=$130,000*1.60471

which is equal to

=$208612.30(Approx).

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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