Solve by using compound table. Find future value
Principal= $12,500 Rate=6% Number of times Compounded per year= quarterly what is the future value?
To find the future value using compound interest formula, we can create a compound table as follows:
| Time Period | Principal | Rate | Compounded | Interest | Total |
|------------------|---------------|----------|---------------|--------------|-----------|
| 0 | $12,500 | 6% | Quarterly | $0 | $12,500 |
| 1 | $12,500 | 6% | Quarterly | $750.00 | $13,250 |
| 2 | $13,250 | 6% | Quarterly | $795.00 | $14,045 |
| 3 | $14,045 | 6% | Quarterly | $842.70 | $14,887.70 |
Therefore, the future value of the principal $12,500 after 3 years with a 6% interest rate compounded quarterly would be $14,887.70.