Question
upstudy study bank question image url

Question 2 Not yet answered Points out of 10.00 p Flag question Use Table \( 12-1 \) of your text to find the future value of \( \$ 1,300 \) deposited at the BEGINNING of every three months, for 3 years if the bank pays \( 12 \% \) interest, compounded quarterly. Select one: a. \( \$ 18,789.65 \) b. \( \$ 19,955.20 \) c. \( \$ 19,003.13 \) o. d. \( \$ 20,830.22 \)

Ask by Fowler Ward. in the United States
Mar 11,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The future value is approximately \$19,003.13.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Bonus Knowledge

If you’re depositing money at the beginning of each period, you’re taking advantage of future value with an annuity due. To find the future value of your quarterly deposits, you can use the formula: FV = P * \[\frac{(1 + r)^n - 1}{r}\] * (1 + r). Here, P is the payment per period, r is the interest rate per period (in this case 3% or 0.03), and n is the total number of periods (12 quarters for 3 years). You're looking for the total of all your future value deposits, which, when calculated correctly, gives you the answer corresponding to option (b): \( \$ 19,955.20 \). So, happy calculating!

Related Questions

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy