Determine the future value of a $25000 investment at an annual rate of 4.85% compounded quarterly for 6 years.

= $ 32,275.00

Equation:

A = P (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 4.85%/100 = 0.0485 per year,

putting time into years for simplicity,

24 quarters : 4 quarters/year = 6 years,

then, solving our equation

A = 25000 (1 + (0.0485 * 6)) = 32275

A = $ 32,275.00

The total amount accrued, principal plus interest,

from simple interest on a principal of $ 25,000.00

at a rate of 4.85% per year

for 6 years (24 quarters) is $ 32,275.00.