Question

The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula: FV = $1,000* (1 + 12%)8 If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV? OFV = $1,000 * (1 + 3%)8 OFV = $1,000(1+12%)32 OFV = $1,000 (1 + 3%)32 OFV = $1,000* (1 + 12%)2

          The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula:
FV = $1,000* (1 + 12%)8
If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV?
OFV = $1,000 * (1 + 3%)8
OFV = $1,000*(1+12%)32
OFV = $1,000* (1 + 3%)32
OFV = $1,000* (1 + 12%)2

The future value of 1,000 compounded annually for 8 years at 12% may be calculated with the following formula:
FV =1,000* (1 + 12%)8
If the same 1,000 was compounded quarterly, what formula would you use to calculate the FV?
OFV =1,000 * (1 + 3%)8
OFV = 1,000*(1+12%)32
OFV =1,000* (1 + 3%)32
OFV = 1,000* (1 + 12%)2

Added by Jennifer W.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Madhur L

05/31/2023

Step 1

Since there are 4 quarters in a year, the total number of compounding periods in 8 years would be 8 * 4 = 32. Show more…

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The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula: FV = $1,000 * (1 + 12%)^8. If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV? FV = $1,000 * (1 + 3%)^8 FV = $1,000 * (1 + 12%)^32 FV = $1,000 * (1 + 3%)^32 FV = $1,000 * (1 + 12%)^2