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20 December, 10:21

You invest $20,000 in an investment account that promises a 6% annual interest, compounded quarterly (that is, four times a year). How much can you expect to have in the account after 1 year? (round to the nearest dollar)

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  1. 20 December, 14:09
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    A=p (1+r/k) ^kn

    A future value

    P present value 20000

    R interest rate 0.06

    K compounded quarterly 4

    N time 1 year

    A=20,000 * (1+0.06:4) ^ (4*1)

    A=21,227.27
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