Calculate the future value of $6,000 earning 8% interest compounded quarterly for 7 years. (Round your answer to two decimal places.)
show your work
To calculate the future value, we can use the formula for compound interest:
FV = PV(1 + r/n)^(nt)
Where:
FV = Future Value
PV = Present Value (initial investment)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
Plugging in the values given:
PV = $6,000
r = 8% or 0.08
n = 4 (quarterly compounding)
t = 7 years
FV = $6,000(1 + 0.08/4)^(4*7)
FV = $6,000(1 + 0.02)^28
FV = $6,000(1.02)^28
FV = $6,000(1.835967)
FV = $11,015.80
Therefore, the future value of $6,000 earning 8% interest compounded quarterly for 7 years is $11,015.80.
no
I apologize for the mistake in my calculation. Let me correct that:
FV = $6,000(1 + 0.08/4)^(4*7)
FV = $6,000(1 + 0.02)^28
FV = $6,000(1.02)^28
FV = $6,000 * 1.693944
FV = $10,163.66
Therefore, the correct future value of $6,000 earning 8% interest compounded quarterly for 7 years is $10,163.66.
still no.
I apologize for the previous errors. Let's correct it:
FV = $6,000(1 + 0.08/4)^(4*7)
FV = $6,000(1.02)^28
FV = $6,000 * 2.091319
FV = $12,553.91
Therefore, the correct future value of $6,000 earning 8% interest compounded quarterly for 7 years is $12,553.91.
STILL NO!!
The correct answer is 10,446.15