Present and future value tables of $1 at 3% are presented below. 11.03000 0.9708

Question

Present and future value tables of $1 at 3% are presented below. 11.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 31.09273 0.91514 3.0909 2.82861 3.1935 2.91347 1.09273 0.91514 1.12551 0.88849 .1836 3.71710 4.3091 3.82861 4 5 1.15927 0.86261 | 5.3091 | 4.57971 | 5.4684 | 4.71710 61.19405 0.83748 7 1.22987 |0.81309 | 7.6625 | 6.23028 | 7.8923 | 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.15917.23028 6.4684 5.417196.6625 5 57971 1.30477 10.76642 | 10.1591 | 7.78611 | 10.4639 | 8.01969 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 9.2526213.19209.53020 12 1.42576 10.70138 | 14.1920 | 9.95400 | 14.6178 110.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1 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 9 10 1.38423 0.72242 12.8078 1.51259 0.66112 Today, Thomas deposited $100,000 in a 4-year, 12% CD that compounds quarterly, what is the maturity value of the CD? Multiple Choice

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.

A=$100,000(1+0.12/4)^(4*4)

=$100,000*(1.03)^16

=$100,000*1.60471(Approx)

=$160471(Approx)

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