Posted by Thara! on Wednesday, April 21, 2010 at 10:51pm.
$10483.34 is the future value of the first two years of investment at the end of the second year.
$16322.67 is the future value of the 3rd, 4th and 5th years of investment at the end of the fifth year (end of term).
The only thing left to do is to calculate the future value of the first two years of investment at the end of term (5th year) at the rate of 9% pa, or 2.25% per quarter.
FV=10483.34*(1.0225)^(4 quarters * 3 years)
= 10483.34*(1.0225)^12
= $13691.76
So the total future value at end of term (5 years) is:
$13691.76+16322.67
=$30014.43
Check my work.
Thank u soo much...u really helped me at the right time...i have final exam tomorrow...and i am now prepared..thanks again!!!
Related Questions
math help plz! - Calculate teh future value of quarterly payments of $1200 for 5...
compounded interest - calculate the future value of an investment of $8,500 if ...
Finance - Find the future value of $10,000 invested now after five years if the ...
fin 200 question - Jean will receive $8,500 per year for the next 15 years from ...
Finance - Jean will receive $8,500 per year for the next 15 years from her trust...
programming - Having troube with java, i am not a regular programmer, if anybody...
math - Computing future value calculate the future value of a retirement account...
Compound Interest : Future Value and Present Value - Payments of $1800 and $2400...
math,correction - can someone correct these for me thanks.. Problem #4 Find the ...
math - How did they get to this answer can someone explain the steps. Directions...
For Further Reading
