Asked by Mitchell Peters on May 22, 2024
Verified
Norah Jacob deposited $6,500 in a credit union, which pays an interest of 6% compounded quarterly. Compute the amount that Norah will have in her account after 4 years. (Use Tables 16-1A&B or a calculator.)
Compounded Quarterly
A method of calculating interest where the accumulated interest is added to the principal amount at the end of each quarter, leading to interest being earned on interest.
- Acquire comprehension of the concept of future value and its calculation procedure.
- Envelop an understanding of the concept of compound interest and its method of computation.
- Educate yourself on the use of financial tables and calculators for the computation of future values and compound interest.
Verified Answer
KH
Katelynn HollandMay 28, 2024
Final Answer :
0.06 ¸ 4 = 0.015; 4 ´ 4 = 16;
$6,500 ´ 1.26899 = $8,248.44 account balance
$6,500 ´ 1.26899 = $8,248.44 account balance
Learning Objectives
- Acquire comprehension of the concept of future value and its calculation procedure.
- Envelop an understanding of the concept of compound interest and its method of computation.
- Educate yourself on the use of financial tables and calculators for the computation of future values and compound interest.
Related questions
Compute the Future Value for Each of the Following Problems ...
Compute the Present Value (Principal) and the Compound Interest Earned ...
Amanda Nelson Wants to Buy a New Car 3 Years ...
Joseph Patrik Will Deposit Enough Money Today So That His ...
Compute the Future Value and the Compound Interest Earned for ...