Question

5. A payment of $1500 is due in three months. Find the equivalent value at nine months if the interest rate is 4% compounded quarterly.* a) $1500 c) $1560 b) $1530 d) $1470

          5. A payment of $1500 is due in three months. Find the equivalent value at nine months if the interest rate is 4% compounded quarterly.*

a) $1500
c) $1560
b) $1530
d) $1470

5. A payment of 1500 is due in three months. Find the equivalent value at nine months if the interest rate is 4% compounded quarterly.*

a)1500
c) 1560
b)1530
d) 1470

Added by Anthony B.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Adi S

07/18/2023

Step 1

Since the interest rate is 4% compounded quarterly, the interest rate per quarter is 4%/4 = 1%. Now, we need to find the future value of the payment after three months (one quarter). We can use the formula for compound interest: $FV = PV(1 + r)^n$ where FV is Show more…

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A payment of $1500 is due in three months. Find the equivalent value at nine months if the interest rate is 4% compounded quarterly. a) $1500 b) $1530 c) $1560 d) $1470

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