contestada

Thermal Systems, a company that specializes in odor
control,made deposits of $10,000 now, $25,000 at the end of month
6, and$30,000 at the end of month 9. Determine the future worth(end
of year 1) of the deposits at an interest rate of 16% peryear,
compouned quarterly.

Respuesta :

pedrocarratore

Answer:

$69,939

Step-by-step explanation:

The equation that describes the future value of an investment with an yearly rate compounded quarterly is:

[tex]FV = PV * (1+\frac{i}{4})^{4*t}[/tex]

Where FV is the future value, PV is hte present value, i is the yearly interest rate, and t is the time in years.

The future value of the deposits is:

[tex]FV = 10,000 * (1+\frac{0.16}{4})^{4*\frac{12-0}{12}}+25,000 * (1+\frac{0.16}{4})^{4*\frac{12-6}{12}}+30,000 * (1+\frac{0.16}{4})^{4*\frac{12-9}{12}}\\FV = \$69,939[/tex]

The future worth of the deposits is $69,939.